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Shareholders of Macerich Co (NYSE: MAC) can enhance their income by selling December covered calls at a $17 strike, earning a premium of $1.20, which translates to an annualized return of 16.7%. This, combined with MAC’s current 4.2% dividend yield, could yield a total annualized rate of 20.9%, provided the stock does not exceed $17, which requires a 5.5% increase from its current price of $16.18.
Macerich’s historical volatility over the past twelve months stands at 40%, and as of mid-afternoon trading on Wednesday, the S&P 500’s put volume was 853,415 contracts against 1.82 million calls, resulting in a put:call ratio of 0.47, indicating high call volume relative to puts.
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