Bears Continue to Circle Underperforming REIT

Short-term options players have been put-heavy

Managing Editor
Feb 12, 2020 at 9:11 AM
facebook twitter linkedin

Real estate investment trust (REIT) Macerich Co (NYSE:MAC) is down 1% in electronic trading, moving lower on the heels of a bear note out of Piper Sandler. The brokerage firm downgraded to "underweight" from "neutral," and sliced its price target to $20 from $26. This revised outlook represents a 17.5% deficit from last night's close, and runs alongside the broader analyst view sinceall 11 covering firms sport a "hold" or worse rating heading into today.

It's no secret that Macerich stock has been a long-term underperformer on the charts. In fact, overhead resistance at the descending 50-day moving average now has the shares down 44% year-over-year. What's more, the equity is just off its Jan. 31 decade low of $22.24, closing Tuesday at $24.23.

It's no surprise then that puts are preferred in the options pits. This is per MAC's Schaeffer's put/call open interest ratio (SOIR) of 3.23, which ranks in the 93rd percentile of its annual range. In other words, short-term options players have rarely been more put-heavy during the last 12 months. 




These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!


Common mistakes options traders make


Special Offers from Schaeffer's Trading Partners