Markets

Call seller aims to pad yield in Macerich

One investor is using options to squeeze income from Macerich.

optionMONSTER's tracking systems detected the sale of about 4,000 June 60 calls in the owner of shopping centers, most of which priced for $0.45. The volume was more than 30 times open interest in the strike, clearly new positions.

The trader probably owns stock and sold the contracts to earn additional income on the position, augmenting the quarterly dividend of $0.55. MAC currently yields about 4 percent, and the options effectively boosted that rate past 7 percent.

The trade obligates the investor to sell the shares for $60 if they close at that level on expiration, while also leaving him or her exposed to downside in the stock. (See our Education section)

MAC closed at $54.27 yesterday, down 0.29 percent in the session. Option volume was 13 times greater than average.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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