Bulls bet on more mileage in Goodyear

optionMONSTER

Shares of Goodyear Tire & Rubber are at their highest level in more than 10 months, and traders are positioning for even more gains.

About 1,300 February 14 calls traded in a strong buying pattern on Monday, mostly for $0.60 and $0.70, optionMONSTER's Heat Seeker system shows. The volume was more than 4.5 times the strike's open interest at the start of the session, indicating that these are new positions.

GT rose 3.91 percent on Monday to close at $13.81, breaking above resistance around the $13.50 level that had been in place since February. The tire maker has been climbing ever since it rose above its 100-day moving average and then its 50-day line at the end of November, attracting bullish option activity along the way.

The call buyers are looking for GT to gain roughly 6 percent by expiration in mid-February. The options could be sold earlier if their premiums rise with any rally before then, but these calls will expire wortheless if the stock doesn't move. (See our Education section)

The trades pushed total option volume in the name to nearly double its daily average for the last month.

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