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Trader bets Gannett levels will hold

Mike Yamamoto (mike.yamamoto@optionmonster.com)

Gannett is rebounding from a recent pullback, and one trader is betting that the stock will hold above current levels.

optionMONSTER's tracking systems detected the sale of 4,000 April 20 puts for $1.40 in less than 30 seconds this morning. The volume is more than 10 times higher than the strike's open interest of just 369 contracts before today's trading began, clearly showing that this is a new position.

GCI is up 1.88 percent today at $20 even. The media company, which owns USA Today and other media properties, is bouncing today after pulling back from a 52-week high of $20.61 reached on Jan. 24. It had been rallying strongly since its 52-week low near $12 in early June.

Today's put seller is betting that shares will stay above $20 through expiration in mid-April. If GCI is below that strike price, the trader will face the obligation to buy shares at an effective price of $18.60. Before this month, the stock hadn't traded above $20 since September 2008.

The put selling follows bullish call buying at the July 23 strike detected by our scanners on Jan. 17.

Total option volume in GCI is more than 6,000 contracts so far today, more than double its daily average of 2,377 for the last month.

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