Call buyers back in Goodyear Tire
The bulls just can't get enough of Goodyear Tire & Rubber.
optionMONSTER's Heat Seeker monitoring program detected the purchase of more than 7,800 January 28 calls, most of which priced for $0.95 to $1. Volume inched above open interest of 5,069 contracts, which indicates new money was put to work on the long side.
Long calls lock in the price where investors can buy a stock. That allows them to play for a rally at limited cost and control their losses if a pullback occurs. They can also generate significant leverage if GT moves in the right direction. (See our Education section)
It's been working in the tire maker so far, handing our premium subscribers big profits back in November as shares rebounded from a long-term low under $20. April 30 calls cited on Monday have also gained about 40 percent as well.
GT rose 1.6 percent to $28.58 yesterday and is trying to break above a long-term resistance level that reaches back to mid-2008. Some chart watchers may expect a sustained rally if it succeeds.
Total option volume was quadruple the daily average, according to Heat Seeker, with calls outnumbering puts by 20 to 1.
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