Innovative Industrial Properties (IIPR), a cannabis-focused real estate investment trust, is the IBD Stock of the Day. IIPR stock has been trading tightly over the past few weeks, with multiple points from which to start a position.

The setup for the Maryland-based company comes after five states on Election Day voted to legalize marijuana to some degree, even as questions surround the prospect of looser restrictions on a federal level, and where the real estate investment trust might fit in a fully-legal U.S.

Other marijuana stocks have also cleared or are trying to clear bases in the wake of the election.

IIPR Stock

Shares are currently trading within a three-weeks-tight pattern. The official buy point for IIPR stock is 165.09. Shares rose 1.3% to close at 153.90 in the stock market today.

However, investors could also start a position at 158.70, which is 10 cents above the high the stock reached last week.

Investors could also start their position as a swing trade or a short-term trade. If IIPR stock closes below its Nov. 17 low of 155.54, they should probably sell. They could hold the stock for longer if trends hold above that level.

Among other marijuana stocks, Canadian cannabis producer Aphria (APHA) rose 3.75% to 6.36 on Monday. The advance put it above a 6.25 entry of a cup base. Canopy Growth (CGC) rose 4.2% to 24.72, further extended from a 22.29 entry in a consolidation.

Cronos Group (CRON), another Canadian marijuana company, added 1.7% to 7.34. The stock is in a consolidation with an 8.23 buy point.

Election Implications For Marijuana Stocks

Among marijuana stocks, Innovative Industrial Properties has generally maintained the best IBD ratings over the past two years. IIPR stock has a Composite Rating of 92. Its EPS Rating is 74.

Innovative Industrial Properties buys properties from pot growers and then leases them back. The company has managed to turn a profit, as some other U.S. companies lay off employees, back away from deals and scale back cultivation in an effort to get out of the red after overexpanding.

Pot's prohibition on a federal level in the U.S. — as well as a broader slide in marijuana stocks due to the legal industry's struggles — have made traditional financing difficult. But such sale-leaseback deals, like the ones struck by Innovative Industrial Properties, have allowed pot companies to quickly bring in money and offload real estate.

As of Nov. 4, Innovative Industrial Properties owned 63 properties across 16 U.S. states.

Roth Capital, in recent comments about IIPR stock, has said that more purchases were likely ahead, as the company tries to lock in gains before potential federal reforms expand banking and financing options to the cannabis industry.

Roth said "the sale-leaseback model remains the nondilutive capital raising method of choice for many operators and (Innovative Industrial) remains the industry leader with unmatched access to capital compared to its peers."

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