General Growth Properties is rising from the ashes of the credit
crunch, and one trader is looking for a rally into the New Year.
optionMONSTER's Heat Seeker tracking system detected the purchase
of 2,032 January 16 calls, most of which priced for $1.34, and the
sale of an equal number of January 16 puts for mostly $0.87. The
transaction cost about $0.47 to implement and are designed to give
the investor leveraged gains on virtually any move above its
GGP fell 0.18 percent to $16.45 in morning trading but is up 9
percent in the last month. The shopping mall owner is in the midst
of a complicated debt-restructuring program that's up for
confirmation by a judge on Thursday.
The company, which owns 180 properties across the country, filed
for Chapter 11 bankruptcy protection in April 2009.
The option trade is known as a "synthetic long" because it will
mimic owning GGP shares. The investor will lose money if the stock
falls below $16.
The transaction accounted for virtually all the options activity in
the name, pushing total volume to 3 times greater than average.
(Chart courtesy of tradeMONSTER)
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