OptionsHouse

Options Trading News

January 17, 2013  Thu 10:06 AM CT

TYC: SEE CHART GET CHAIN FIND STRATEGIES
One investor is betting that Tyco still has room to run.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 7,695 July 35 calls for $0.53 and the sale of an equal number of July 32 calls for $1.30. Volume was below open interest at the lower strike, indicating that an existing position was closed and rolled higher.

The trader collected a credit of $0.77, recovering more than half their capital at risk. He or she is still eligible to profit from additional upside if the industrial conglomerate continues to rally into the summer.

TYC is up 0.92 percent to $30.82 in morning trading. The stock is up more than 10 percent in the last month and has been climbing steadily along with other industrials. It's now back to levels from early last decade, when it collapsed amid the ouster of former CEO Dennis Kozlowski.

The company's next earnings report is scheduled for Jan. 29.

Total option volume is 8 times greater than average in TYC so far today, with calls outnumbering puts by more than 17 to 1.
Share this article with your friends


OptionsHouse

Premium Services

Education & Strategy

Timing the Trade

Both break outs and a break downs need to have a couple things happen before it is considered a confirmed break out or break down by technical definition!  The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »