Learn the trade here. Make it on tradeMONSTER

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

Bullish earnings play on Genworth

October 21, 2014

The life insurer gapped down in late July when management said it may face significant charges on long-term health policies, but traders are looking for a rally after the next earnings report.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinars

Make Money in a Volatile Market

Education & Strategy

Vexed by the VIX

Many people probably don't know that the calculation changed for the CBOE Volatility Index this week, but it's worth discussing...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER