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September 3, 2013  Tue 12:22 PM CT

GT: SEE CHART GET CHAIN FIND STRATEGIES
Goodyear Tire & Rubber has been a monster, and traders are upping the ante.

optionMONSTER's Heat Seeker monitoring system detected the purchase of 7,500 January 23 calls for $1.04 and the sale of 5,000 September 19 calls for $1.78. Volume was below open interest in the shorter-dated contracts, indicating that an existing long position was closed and rolled forward in time.

These long calls lock in the price where shares can be purchased in the tire company, letting investors cheaply control upside in the name. They also have the potential to generate significant leverage if the stock rallies into early next year. (See today's update of winning trades for more.)

GT is up 0.65 percent to $20.25 in afternoon trading and has risen more than 60 percent in the last four months. It's been riding a wave of bullish sentiment toward the automotive industry and now stands at its highest levels since the summer of 2008.

Today's trader clearly likes the name because he or she put an additional $110,000 to work on the long side. Increasing the number of contracts can boost leverage, but only if GT breaks resistance and makes a run toward $30. Should it remain at current levels, the trader will lose existing profits and money spent today.

Total option volume is triple the daily average so far today, according to the Heat Seeker.
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