A large trade is betting that downside potential is limited in General Growth Properties
optionMONSTER's monitoring systems detected the sale of 5,869 May 26 puts for $0.39 in one print yesterday. Volume was more than 35 times open interest at the strike, showing that this is a new position.
Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think that the risk of a big drop is limited. (See our Education section)
GGP rose 0.75 percent to $29.73 yesterday and is up 9 percent in the last three months. The real-estate investment trust is scheduled to report earnings after the close on May 2, about three weeks before yesterday's short puts expire.
Overall option volume in the name was twice its daily average yesterday.
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