Goodyear bulls come back for second day
Goodyear Tire & Rubber attracted bullish option activity yesterday for the second session in a row.
optionMONSTER's market scanner shows that more than 11,000 September 29 calls were purchased for $0.80 to $1.20. Volume well surpassed open interest of 2,830 contracts, an indication that new positions were established.
This follows heavy buying in the September 30 calls on Wednesday, which were reported in real time on our InsideOptions Pro subscription service. Those contracts nearly doubled in value by yesterday morning.
Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)
GT rose 1.71 percent to $29.12 yesterday and is up 8 percent in the last month. The tire maker's last quarterly report on July 27 was bullish, and its next quarterly numbers are estimated for pre-market hours on Oct. 27.
Overall option volume was 10 times greater than average yesterday. Calls outnumbered puts by a bullish 9-to-1 ratio.
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