Put volume is running at eight times what is typically seen at this point
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%.
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.