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New Options Trade: Battleground Retail REIT, Attractive Upfront Income

There’s usually at least some truth to every fear mongering media narrative, and the talking heads and short sellers have not been kind to retail REITs, as growing e-commerce continues to dramatically change the industry landscape. Yesterday we received news confirming that Simon Property Group (SPG) intends to acquire its smaller “A-Class” property REIT peer Taubman Centers (TCO), and shares of TCO shot up dramatically. There remains heightened uncertainty and volatility in this space, and it is making for an interesting, high-upfront-premium, income-generating options trade opportunity. We believe this is an attractive trade to place today, and potentially tomorrow as long as the share price doesn’t move too dramatically before then.