Shares of Goodyear Tire & Rubber have taken a big hit since the company released weak quarterly numbers earlier this month, but one trader is betting on a floor beneath the stock.
GT fell 1.22 percent yesterday to $12.95. Shares of the tire maker gapped down from above $14 on Feb. 14 after the earnings report and are now sitting at a support level that has been in place since late November.
More than 4,400 July 11 calls traded yesterday in a strong selling pattern, including one print of 4,000 that went for $0.60, according to optionMONSTER's systems. Open interest at the strike was just 655 contracts at the start of the session, so this was new activity.
Yesterday's put sellers believe that GT will be above the $11 strike price when the options expire on July 20. If the stock is below that level at expiration, the trader will be required to buy the shares but will keep the $0.60 from the put sale.
The trade pushed overall option volume in the name past 10,000 contracts, more than 60 percent higher than its daily average.
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