Medical Properties Trust Inc. ( MPW) is a stock that not many people have heard of, but that doesn't mean they shouldn't try to play it.
This Real Estate Investment Trust owns medical offices and rents them out, and the stock has been under considerable pressure of late, and continues to see downside pressure.
After bouncing off $14 a share, MPW is seeing considerable bearish flow. In one order, a trader bought 10,000 of the November $13-$8 puts spreads. Looking at the options, the best value is probably the Nov. 18 $14 puts, which cost about $0.90. Based on this paper, we are primed to potentially double our money on these.
Trade: Buy-to-open one MPW Nov. 18 $14 put for about $0.90.
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The price action this week does not change our thesis that inflation remains the key macro driver for markets.
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