Investors are betting that Gannett will reach levels where it traded before the 2008 market crash.
About 7,800 July 23 calls traded in a strong buying pattern yesterday for $0.40 to $0.50, according to optionMONSTER's Heat Seeker tracking system. These are all new positions, as there was no open interest in the strike at the beginning of the day.
GCI rose 2.55 percent yesterday to close at $19.68. The media company, which owns USA Today and other media properties, has rallied strongly since its 52-week low near $12 in early June, but it hasn't traded above $20 since September 2008.
Yesterday's long calls , which lock in the price where shares can be purchased, are looking for GCI to close above the $23 strike price at expiration in mid-July. The company is scheduled to release its next earnings report on Feb. 4. (See our Education section)
The trades pushed GCI's total option volume to 7,795 contracts yesterday, compared with a daily average of 1,654. Overall calls at all strikes outnumbered puts by more than 20 to 1, a reflection of the session's bullish sentiment.
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