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Retail REITs are finishing up their end of earnings reports, and the news isn’t great. Net Operating Income (NOI) and dividend stability outlooks have weakened. Even the above-expectation reports have dragged prices up to resistance, where a drop is more likely and beginning to develop.

Our outlook for Tanger Factory Outlet Centers Inc. (NYSE:SKT) is short-term as investors reprice the value of retail REIT dividends in a shifting interest-rate environment with compressed retail margins. We expect SKT to drop through support in the short term and are expecting a target in the low $20 range.

 ‘Buy to open’ the SKT September 25 Puts (SKT170915P00025000) for a maximum price of $0.65.

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InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.

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