The Macerich Company (MAC) is a REIT that owns shopping centers in the U.S. and plans to sell up to $1 billion in assets. They are currently in talks with Starwood for the sale of four malls with their $8.35 billion market cap which is bigger than some S&P 500 components.
MARKET ACTION
Yesterday, I saw paper buy 10,000 MAC March 65 Calls for $.20. (Paper is market slang for an order that comes from a hedge fund, mutual fund, retail bank, or big trader.)
TRADING STYLE
I want to take trades that mimic the big money, so I bought the April 60 Straddles for $3. Let’s breakdown my trade.
Buying the MAC April 60 Straddle for $3 total
Risk: $300 per one lot
Reward: Unlimited
Breakeven: $57 and $63
THE GREEKS
Delta: Long
Gamma: Long
Vega: Long
Theta: Short
= = =
