GCI – Gannet Co., Inc. – Shares of the USA Today publisher fell as much as 3.2% to touch down at an intraday low of $13.07 in the first half of the trading session after the firm was rated new ‘neutral’ with a target share price of $13.00 at UBS. Gannet’s shares are steadily heading towards the $13.00 level as of 11:40 am ET. Investors wary the news and information company’s shares are set to extend losses picked up put options in the April 2011 contract. Long-term pessimists purchased approximately 1,700 calls at the April 2011 $13 strike for a premium of $2.00 apiece. Traders holding these contracts make money if GCI shares plunge 15.8% lower to breach the effective breakeven point to the downside at $11.00 by expiration day. Bearish sentiment spread to the April 2011 $12 strike where some 3,300 puts were purchased for an average premium of $1.55 a-pop. Put buyers at this strike are poised to profit should Gannet’s shares drop 20.00% to trade beneath the average breakeven price of $10.45 ahead of expiration day in April. The overall reading of options implied volatility on the publisher jumped 8.00% to 52.75% by 11:45 am ET.
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