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October 11, 2013  Fri 4:14 AM CT

GCI: SEE CHART GET CHAIN FIND STRATEGIES
A large trade is looking for shares of media company Gannett to pop by early next year.

optionMONSTER's Heat Seeker system shows that 5,000 January 26 calls were bought yesterday morning for $1.25. This is clearly a new position, as open interest in the strike was just 437 contracts before the trade appeared.

These long calls, which lock in price where the stock can be purchased no matter how far it might rise, are looking for GCI to climb above $27.25 by mid-January. They could be sold earlier at a profit if premiums gain with a rally before then, but the contracts will expire worthless if shares remain below $26. (See our Education section)

GCI was up 3.49 percent yesterday to close at $25.24, bouncing off its 100-day moving average. The company, which owns television stations and USA Today, hit a five-year high of $27.04 on Oct. 1 but then began a steep decline when the federal government's shutdown threatened to stall regulatory approval for its $1.5 billion purchase of broadcaster Belo.

Gannett is scheduled to report third-quarter results on Oct. 21.

Total option volume in the name topped 9,000 contracts yesterday, more than triple its daily average for the last month. Overall calls outnumbered puts by almost 9 to 1, a reflection of the session's bullish bias.
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Timing the Trade

Both break outs and a break downs need to have a couple things happen before it is considered a confirmed break out or break down by technical definition!  The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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