<< An investor sold 12,000 August 5 calls for $5.62. >>
Doesn't really explain the drop to me; maybe he was just trying to free up some cash for some other opportunities. There are 10 insties holding enough shares to sell that many calls covered; hard to imagine they were naked calls, especially since he didn't get any premium in the sale.
In any case, I think yesterday's move down was more a movement "in sympathy" with the other REITs, following on NLY's SPO.
this may be true, but if they need cash, why sell covered calls at zero premium when you could sell it outright and raise about twice the cash. When I sell covered calls, I sell them either out of the money or slightly in the money to get some kind of premium out of it. Selling a deep in the money call at zero premium may indicate they anticipate a steep drop?