Gannett is near five-year highs, and one trader is betting that it will hold most of its gains after reporting earnings next week.
optionMONSTER's detected the sale of 4,000 May 20 puts for $0.65 in less than 2 minutes yesterday. This is clearly a new position, as volume was more than triple the strike's open interest before the session began.
The put seller is looking for GCI to stay above the $20 strike price through expiration in mid-May. But if the stock falls below that level, the trader will be on the hook to buy shares at an effective price of $19.35 once the $0.65 from the put sale is included. (See our Education section)
GCI rose 1.04 percent yesterday to close at $21.28. The company, whose holdings include USA Today and television stations, pulled back on Monday with the rest of the market but is back near its highest levels since June 2008.
Gannett is scheduled to report first-quarter results on on Tuesday morning. Total option volume in the name exceeded 5,700 contracts, more than double its daily average.
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