Schaeffer's Top Stock Picks for '25

Options Bears Double Down on Medical Properties Trust Stock

The stock also received a price-target cut from Truist Securities

Deputy Editor
Sep 13, 2022 at 12:27 PM
facebook X logo linkedin


Options bears are blasting Medical Properties Trust Inc (NYSE:MPW) ahead of tomorrow's ex-dividend date, with MPW set to pay 29 cents per share. The stock is down 3.5% to trade at $14.50 at last glance, after Truist Securities cut the real estate investment trust's (REIT) price-target to $17 from $18.

So far, 42,000 puts have crossed the tape -- eight times the intraday average -- in comparison to just 2,092 calls. The November 13 and 8 puts are the most popular contracts, with new positions being opened at both. 

This penchant for bearish bets is nothing new, per MPW's 50-day put/call volume ratio of 15.18 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio ranks higher than 99% of readings from the past year, indicating long puts are getting picked up at a much faster-than-usual rate. 

On the charts, MPW has found a floor at the $14 level -- home to its recent Sep. 7, two-year low of $14.07. However, the 20-day moving average rejected the shares' most recent rally attempt above the $15 region. Year-to-date, the equity is down 38.7%. 

MPW 20 Day

Though shorts have started to cover, short interest still accounts for 7.1% of the stock's available float. It would take nearly six days to buy back these bearish bets, at MPW's average pace of trading. 

 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?

 

 

(function(doc, script) { var js, fjs = doc.getElementsByTagName(script)[0], frag = doc.createDocumentFragment(), add = function(url, id) { if (doc.getElementById(id)) {return;} js = doc.createElement(script); js.src = url; id && (js.id = id); frag.appendChild( js ); }; // Google+ button //add('https://apis.google.com/js/platform.js', async="defer"); // Facebook SDK add('//connect.facebook.net/en_US/all.js#xfbml=1&appId=772755279557744', 'facebook-jssdk'); // Twitter SDK //add('//platform.twitter.com/widgets.js', charset='utf-8'); fjs.parentNode.insertBefore(frag, fjs); }(document, 'script'));