What bull sees in General Growth

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General Growth Properties is rising from the ashes of the credit crunch, and one trader is looking for a rally into the New Year.

GGP 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 current price.

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)



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Options

Referenced Stocks: GGP

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