Kevin Kelly's Prologis Trade

Benchmark Investments' Kevin Kelly spoke on Bloomberg Markets about an options strategy in Prologis Inc (NYSE: PLD).

Kelly wants to buy the stock and get the dividend.

Additionally, he wants to sell the January 70 call for $0.80, which is 1.2 percent of the current stock price. It gives him protection in case the stock trades lower. If it stays at its current levels or moves higher, he would add 1.2 percent to the dividend yield. The strike is 4.7 percent above the current market price, so if the stock trades higher he can participate in the move.