Genco Shipping & Trading has been falling for months, and
one investor wants out.
optionMONSTER's Depth Charge monitoring program detected the
purchase of 2,400 July 4 put for $0.45 and the sale of an equal
number of July 4 calls for about $0.71. Volume was more than
quadruple open interest at both strikes.
The transaction resulted in a credit of $0.26 and is tantamount to
selling the stock for $4.26. The trader will be forced to exit the
position if GNK remains above $4 through expiration but below that
level will make money on the puts. (See our
section for more on the strategy, which is similar to a
GNK rose 0.47 percent to $4.30 on Friday and is trying to hold
above a previous all-time low established last August. It had
traded for more than $80 before the market crashed in 2008.
Overall option volume in the stock was more than 3 times greater
than average in the session.
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