Options Update: REIT volatility elevated on economic pressures; AMB, ESS, AVB


AMB Property (NYSE: AMB), a global developer and owner of industrial real estate, closed at $13.25 Wednesday. Goldman Sachs says: "We remain cautious on REITS." AMB December option implied volatility of 107 is above its 8-week average of 66 according to Track Data, suggesting larger price movement.

Essex Property Trust (NYSE: ESS), a REIT with the majority of real estate consisting of apartment communities, closed at $74.33 Wednesday. ESS December option implied volatility of 81 is above its 26-week average of 51 according to Track Data, suggesting larger price movement.

AvalonBay (NYSE: AVB), an owner or indirect owner of 178 apartment communities containing 50,370 apartment homes, closed at $55.03 Wednesday. AVB December option implied volatility of 83 is above its 26-week average of 54 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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Last updated: February 10, 2012: 09:13 AM

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