General Growth gets show of support
Mike Yamamoto | firstname.lastname@example.org
More than 5,000 April 20 puts were sold in less than a minute today, led by a single print of 4,602 that went for $1.35, according to optionMONSTER's tracking systems. The volume was well above the strike's open interest of 3,301 at the beginning of the day, indicating that this is a new position.
The put seller is betting that shares of the company, which has stakes in 136 regional malls across 41 states, will be above the $20 strike price at expiration in mid-April. If the stock is below that level at that time, the trader will face the obligation to buy shares at an effective price of about $18.65 once the credit from the put sale is factored in.
GGP is off 1.21 percent to $19.62 as shares continue to trade in a range between about $18.50 and $20.50 that has been in place since Sept. 10. The real-estate investment trust gapped lower that day after the General Growth's board rejected a demand by stakeholder Bill Ackman, owner of hedge fund Pershing Square Capital Management, to sell the company.