Elliott Investment Management has a $2 billion stake in Crown Castle
The shares of Crown Castle Inc (NYSE:CCI) are on the rise today, after Elliott Investment Management disclosed a $2 billion stake in the company and reportedly is pushing for significant changes. In a letter to the board, the hedge fund detailed its perspectives on the REIT's underperformance and called for new leadership.
At last check, CCI was up 4.6% at $108.36, further removing itself from its Oct. 23 nearly seven-year low of $84.72. Today's pop also has the stock breaking above recent pressure at its 150-day moving average. Since the start of the year, the equity is still down 20%.
Crown Castle stock's typically quiet options pits are teeming with activity in response. So far, 2,009 calls and 2,704 puts have been exchanged, volume that is 2.1 times the average intraday amount already. The December 100 put is the most popular, with new positions being sold to open there.
These options are attractively priced at the moment, too, per CCI's Schaeffer's Volatility Index (SVI) of 21%, which ranks in the low 4th percentile of its annual range. This means options traders are pricing in low volatility expectations.