Call selling tops today's option trading in Goodyear Tire & Rubber.
Almost all of today's activity in GT comes in the July 30 calls, where just shy of 4,000 contracts traded with big blocks sold for the bid price of $1.05, according to optionMONSTER's tracking systems. The volume is well above previous open interest of 1,074 contracts, clearly showing that new positions were established.
The calls could have been sold done naked with an initial bearish bias. Alternatively, the contracts could have been traded against long shares in a covered-call position , which would be bullish up to the $30 strike price but gives up any gains above that level. (See our Education section)
GT is up fractionally to $26.95. The tire manufacturer hit a 52-week intraday high of $27.27 yesterday, surging from the $24 level after reporting quarterly results.
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