Macy’s Inc. (M) Call Options Rally as Shares Climb Higher

Upside option positions are delivering big profits in Macy’s Inc. (M).

On Jun. 23, Market Rebellion’s Unusual Option Activity Service identified the purchase of 10,000 August $13 call options for $0.13 per contract, with M shares trading at $10.64, significantly exceeding the strike’s previous open interest of 7,150 contracts.

Those August $13 calls have traded as high as $0.67 today with the stock at $12.91, delivering impressive returns of approximately 415.38% from the initial entry price of $0.13. Meanwhile, M shares gained approximately 21.33% from their initial trading level around $10.64, demonstrating how options can deliver significantly amplified returns compared to simply owning the underlying stock.

This performance illustrates the power of options leverage when the directional thesis proves correct, though it’s important to note that this same leverage can work against traders when market moves go in the opposite direction.

The strong move in M comes as Macy’s Inc., the iconic American department store chain, benefits from growing investor confidence in its “Bold New Chapter” turnaround strategy. The company’s transformation plan includes closing 150 underperforming stores over three years while investing heavily in its most profitable locations. Macy’s first quarter 2025 results showed net sales of $4.6 billion, exceeding the company’s prior guidance range, with the company posting adjusted diluted EPS of $0.16 that surpassed guidance.

The turnaround strategy appears to be gaining momentum, with Macy’s Reimagine 125 stores outperforming the broader Macy’s fleet, while both Bloomingdale’s and Bluemercury divisions delivered consistent positive comparable sales. Macy’s plans to reinvest between $600 million and $700 million, partially funded by savings from store closures, with these funds supporting renovations at 350 existing locations. The upgrades emphasize product curation, store design, and omnichannel integration.

Macy’s Inc. specializes in operating department stores, websites, and mobile applications under the Macy’s, Bloomingdale’s, and Bluemercury brands. The company sells a wide range of merchandise including apparel, accessories, cosmetics, home furnishings, and other consumer goods. Founded in 1858 and headquartered in New York City, Macy’s has been a fixture in American retail for over 165 years. The company operates approximately 722 stores across 43 states, the District of Columbia, Puerto Rico, and Guam, along with robust digital commerce platforms.

M settled this session at $12.73, up 1.76% on the day and up significantly from the $10.64 level when the original call activity was spotted.