Someone doesn't like Getty Realty.
optionMONSTER's tracking systems detected a large bearish credit spread in GTY, which owns and leases commercial real estate for filling stations. While it owns the Getty trademark, its properties are used by a variety of gasoline brands.
The trader sold 3,000 September 25 calls for $1.85 and purchased an equal number of September 30 calls for $0.475. Volume was more than 5 times open interest in both strikes.
The strategy yielded income of $1.375, which the investor can keep if GTY remains at or below $25 on expiration. Profit will erode above that level and turn to losses over $26.375.
Thanks to the upside calls, the maximum that the trader can lose is $3.625. The stock fell sharply as soon as the credit spread appeared, confirming the bearish nature of the position.
GTY is down 6.24 percent to $24.05 in afternoon trading. Today's negative sentiment follows a large downside gap that occurred on March 2 after a major tenant said it may fail to make a rent payment.
Overall option volume in GTY is 32 times greater than average so far today.
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