Selling $PSA Puts

Public Storage March

In the wake of a choppy start to 2026 for real estate, Public Storage ($PSA) just proved why it remains the undisputed king of the self-storage mountain. Following a solid Q4 earnings report on February 12th that saw a beat on both Funds From Operations (FFO) and revenue, the stock has rallied back toward the $292 level.

But while the momentum is currently up and to the right, a massive institutional trader just stepped in to capitalize on the lingering volatility. The trade: Selling 1,050 contracts of the March 20, 2026, $270 Puts for $2.30 each.

This is a $241,500 immediate payday on a $28 million notional position. It’s a bet that the storage sector’s normalization is officially complete. Here is why you should follow the flow.

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1. The Anatomy of the Trade

• The Position: Short 1,050 Contracts ($270 Strike)

• Expiration: March 20, 2026

• Premium Collected: $2.30 ($230 per contract)

• The Buffer: With $PSA at $292, the $270 strike offers a healthy 7.5% margin of safety.

• The Break-Even: $267.70.

Public Storage’s Q4 results (released yesterday) provided the exact clarity the market was looking for:

• The FFO Beat: Core FFO came in at $4.26 per share, comfortably beating the $4.21 consensus.

• 2026 Guidance: Management issued an optimistic full-year 2026 FFO guidance of $16.35 – $17.00. At current prices, that prices $PSA at a very reasonable multiple for a sector leader.

• Operational Stability: Despite the cautious tone in broader real estate, PSA’s revenue rose 3.2% year-over-year, driven by resilient pricing power in high-barrier urban markets like New York and Boston.

3. The $270 Level

Technically, $270 has acted as a significant structural support level.

In early February, the stock tested the $271 range and was immediately met with aggressive institutional buying. By selling the $270 put, this trade is positioning you right at the bottom of the current trading range. Even if the market sees a minor pullback in late February, this trade is betting that the 4.1% dividend yield will keep the floor firmly in place.

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Final Verdict

This trade doesn’t require a moonshot, just normalization. The self-storage industry is entering a phase of disciplined execution where supply is finally tapering off. With 78% of the company owned by institutions, this premium collection is a high-probability way to generate income while the market digests the 2026 guidance.