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Getty Realty draws large bearish spread

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.

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

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


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

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