Editor's Note:
We are taking advantage of the market's recent dip to launch bullish positions in this REIT.

- James


NEW DIRECTIONAL CALL PLAYS

Macerich Co. - MAC - close: 46.91 change: +0.64

Stop Loss: 44.75
Target(s): 49.75, 54.00
Current Option Gain/Loss: + 0.0%
Time Frame: 4 to 5 weeks
New Positions: Yes

Company Description:
Macerich is a fully integrated self-managed and self-administered real estate investment trust, which focuses on the acquisition, leasing, management, development and redevelopment of regional malls throughout the United States. Macerich now owns approximately 73 million square feet of gross leaseable area consisting primarily of interests in 71 regional malls. (source: company press release or website)

Why We Like It:
I want to take another swing at the REIT industry again. MAC vaulted to new two-year highs in early November on a strong earnings report. I'm sure a lot of that move was short covering. Now that the post-earnings rally has corrected traders bought the dip twice near $46.00, which as prior resistance should be new support. I am suggesting we buy calls now, at current levels. We'll use a stop loss at $44.75 but more conservative traders might be able to get away with a tighter stop. Our first target is $49.75. Our second target is $54.00 but that's probably wishful thinking on my part. Maybe if we could buy January calls but none are available and I didn't want to pay for March calls.

Suggested Position: Buy the December $50 calls (symbol:MAC1018L50) current ask $0.75

Annotated Chart:

Entry on November 11th at $ xx.xx
Earnings Date 02/10/11 (unconfirmed)
Average Daily Volume = 1.2 million
Listed on November 10th, 2010