OptionsHouse

Options Trading News

April 4, 2014  Fri 4:45 AM CT

GNW: SEE CHART GET CHAIN FIND STRATEGIES
Genworth Financial drew bullish option trades yesterday as shares reached a four-year high.

More than 7,000 April 19 calls were purchased for $0.07 to $0.24 yesterday, according to optionMONSTER's Heat Seeker tracking system. Previous open interest in the strike was just 383 contracts, indicating that new positions were established.

Our scanners also detected heavy buying in the Weekly 18 calls that expire at the end of today's session, as some 6,000 contracts traded for $0.02 to $0.50. Traders also purchased the Weekly 18.50 contracts that expire at the end of next week. Volume was far above the open interest in both of those strikes.

These long calls lock in the price where the stock can be purchased no matter how far it might climb. They could be sold earlier at a profit if premiums rise with a rally before their respective expiration dates, but the contracts could end up worthless if shares drop. (See our Education section)

GNW closed yesterday unchanged at $18.23, in the middle of its session range. The company, which offers insurance and investment services, hit $18.58 earlier in the day--its highest price since April 2010.

Total option volume in the name topped 34,000 contracts, 5 times its daily average for the last month. Overall calls outnumbered puts by more than 4 to 1.
Share this article with your friends


Related Stories

GNW

Notable option activity in equity names

February 2, 2016

Nearing the halfway mark in today's session, here are the individual equity names with unusual option activity on optionMONSTER's ActionTracker data system.

OptionsHouse

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

Sweet Spot Exceptions

As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

View more education articles »