Learn the trade here. Make it on tradeMONSTER

Options Trading News

June 10, 2011  Fri 12:04 AM CT

GT: SEE CHART GET CHAIN FIND STRATEGIES
Goodyear Tire & Rubber has pulled back after a pop in April, and sentiment is turning positive once again.

In its largest option trade of the day, about 10,000 January 15 puts were sold for $1.65 against open interest of just 911 contracts. That reflects confidence that the tire maker will hold its ground or push higher over the remainder the year.

GT rose 0.44 percent to $17.84 yesterday. The company has been profiting from strong demand and price increases, which drove earnings and revenue past forecasts the last time results came out on April 29. The shares gapped higher on that news and made a new 52-week high in May before returning to levels where they traded immediately before the earnings report.

Investors also bought the June 15, 16, 17, and 18 calls. Combined with the put selling, the activity was broadly positive and indicates that investors are using the latest pullback to get long.

Overall option volume in GT was more than 7 times greater than average in the session.
Share this article with your friends


Premium Services

Education & Strategy

It's all skewed up

Most new option traders know little about implied volatility, and learn the hard way. Today we want to help you...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER