Market News

June 10, 2011  Fri 12:04 AM CT

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.
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