Trade ideas

Today’s trade idea for option traders: Kimco Realty Corp.

trade idea for option traders

Yes, because of COVID-19 it was a bad year for REITs. And Kimco Realty was also suffering from a roughly 28% decline. Of course, with around 400 shopping centers getting shut down and consumers increasingly buying online, it’s would be hard to make money in this business. Nevertheless, Kimco could collect around 90% of its October rent and thus, the revenue was down “just” 8% in the third quarter of 2020. And that was maybe the reason Kimco increased its dividend in the fourth quarter, just after the dividend cut in the third quarter. Of course, Kimco is facing a long recovery process now. It’s not only because of the Corona pandemic but also because of the headwinds from the online shopping which is, of course, a strong competitor of retail REITs. Therefore, long term-investors should be cautious with Kimco, too. But for all option traders who are usually short term oriented, there is an opportunity to sell options and collect a premium. So let’s check it out, folks.