What's behind large put sale in Gannett
Chris McKhann | email@example.com
GCI is down 0.7 percent to $12.70 in early afternoon trading. Shares of the media company bounced off support around $12.20 last week but remain in a downtrend from reaching $16 since late March.
optionMONSTER's systems show that a trader sold 14,000 July 11 puts for the bid price of $0.15. Open interest at the strike was a mere 156 contracts at the start of the day, so this is a new position.
The put selling is a bet that shares will hold up above $11 through that July expiration and reflects a belief that those contracts are overpriced. The trader is also willing to buy the stock if it is below the strike price.
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