Learn the trade here. Make it on tradeMONSTER

Options Trading News

June 28, 2013  Fri 4:45 AM CT

GTAT: SEE CHART GET CHAIN FIND STRATEGIES
GT Advanced Technologies is trying to make a comeback, and traders are hoping to ride the wave.

More than 4,600 December 5 calls traded in a strong buying pattern yesterday, most of them going for $0.50. The volume was well above the strike's open interest of 2,725 contracts, indicating new activity.

These long calls, which lock in the price where traders can buy the stock, are looking for GTAT to rally above $5.50 by mid-December. But they will expire worthless if the shares remain below the $5 strike price. (See our Education section)

GTAT gapped higher by 13.85 percent to $4.11 yesterday after Canaccord Genuity upgraded the stock to a "buy" from a "hold" while raising its price target to $5 from $4. That brought the stock back above its 50-day moving average, but the shares are still 42 percent below their 52-week high of $7.09 from last September and 76.5 percent under their all-time high of $17.50 reached in July 2011.

The company, which makes photovoltaic equipment, fell hard with the collapse of the solar-technology market but is expected to benefit from the budding recovery in that industry. Perhaps more important, GTAT has been diversifying into sapphire touchscreens and other technologies with high growth potential.

Yesterday's call buying pushed total option volume in the name to 9,498 contracts, more than 33 times its daily average for the last month.
Share this article with your friends


Premium Services

Free Webinar Series

The 100K Challenge

Education & Strategy

Anatomy of a butterfly

One of the many esoterically named option strategies is known as a "butterfly." But don't be fooled: Like other advanced...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER