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Trade sees cap in General Growth

Chris McKhann (chris.mckhann@optionmonster.com)

One investor apparently sees limited upside in General Growth Properties.

More than 5,600 GGP options changed hands yesterday, compared to a daily average of 82 for the last month. Virtually all of the action was in a single trade.

optionMONSTER systems detected the sale of 5,619 August 22 calls for $0.17. This is clearly a new position, as open interest in the strike was just 1 contract before the trade appeared.

The options were likely sold against long shares in a covered-call position . That means the investor sees little near-term upside in shares and wants to collect the option premium as income while waiting for the stock to move. (See our Education section)

GGP was up fractionally yesterday to close at $21.44, its highest close in about a month. The real-estate investment trust bounced off support at $19 in late June after coming down from at 52-week high above $23 in early May.

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