Gannett is trying to fight its way higher, but investors are nervous that it may drop.
optionMONSTER's Depth Charge monitoring system detected the purchase of more than 9,000 December 11 puts for $0.20 and $0.25 against open interest of 456 contracts. The transactions came as GCI rose, and were followed by continued upside in the shares while the rest of the market fell into the afternoon. That suggests the puts were used as protection by investors buying the media stock. (See our Education section)
GCI rose 5.77 percent to $11.91 on Friday on strong share volume, which also indicates the name is under accumulation. It lost about half its value between February and October but trades less than 6 times forward earnings and has an enterprise value of less than 4 times EBITDA. Some value investors may find those multiples attractive--especially heading into an election year that will probably see heavy political advertising.
Other related companies in the media and ad sector, such as Interpublic and CBS , have also seen bullish trades recently. GCI, which owns USA Today and 23 television stations, missed estimates the last time it reported earnings on Oct. 17.
Overall option volume was 24 times greater than average on Friday, with puts outnumbering calls by 15 to 1.
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