Options Trading News

August 29, 2013  Thu 12:21 PM CT

The options paper is hitting hard in Garmin today as traders look to navigate a rally in the share price.

Our Heat Seeker tracking system shows heavy call volume in the maker of global-positioning devices, heavily focused on two contracts: The January 41s trade more than 4,000 times, mostly for $1.97 to $2.05, while an even 4,000 contracts have changed hands in the April 48s for $0.66 to $0.76. There was barely
any open interest at either strike before the transactions appeared.

It appears that both contracts were purchased, which reflects a strongly bullish sentiment toward the company. Barely 20 minutes later, traders also sold 2,000 January 35 puts, mostly for $0.95 to $0.97. In that transaction, they are looking for shares to remain above $35. (See our Education section)

GRMN rallied as the options traded and is now up 6.48 percent to $42.07 this afternoon. The shares are up 19 percent in the last three months, while the broader market is flat over the same period. Its most recent earnings report also beat expectations.

Overall option volume is 13 times greater than average so far today, according to the Heat Seeker.
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