Genuine Parts traders lock in gains
Mike Yamamoto | [email protected]
optionMONSTER's Depth Charge system detected buying in the July 80 puts this morning as premiums rose from $0.75 to $1.05. Volume topped 2,600 contracts, well above the the previous open interest of just 122 at the strike, indicating that these are new positions.
GPC is up 0.69 percent to $83.81 in morning trading, not far from its peak of $84.27 reached on May 22. The car-parts manufacturer almost hit that level yesterday when it gapped higher from below $80 as auto makers reported strong sales numbers.
Given the spike higher, it is likely that investors are purchasing protective puts to lock in profits. The company is scheduled to report second-quarter results on July 18, one day before these options expire. (See our Education section)
Total option volume in the name is 5 times its daily average for the last month. Puts outnumber calls by 18 to 1.