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Bulls pile into Dana ahead of earnings

Mike Yamamoto (mike.yamamoto@optionmonster.com)

Option traders are bullish on Dana Holding with its stock at a key level ahead of the company's earnings report at the end of this week.

More than 4,400 November 13 calls have traded in a strong buying pattern, with the largest prints going for $0.60 and $0.65, according to optionMONSTER's Heat Seeker tracking system. The volume dwarfed open interest of 133 contracts in the strike at the start of the session, indicating new positions.

DAN is up 0.99 percent to $13.03 in early afternoon trading, sitting just above its 100-day moving average. Shares of the auto-parts and drivetrain manufacturer gapped higher after its last quarterly release in late July but have fallen since failing to break resistance around $14.50.

Today's long calls are looking for the stock to gain roughly 5 percent by mid-November. Those options could be sold at a profit earlier in the event of a rally, but they will expire worthless if shares are below the $13 strike price. (See our Education section)

Overall option volume in the name is more than 16 times its daily average. Only 2 puts have traded in all strikes, a reflection of the session's bullish sentiment.

The company is scheduled to release third-quarter results on Friday morning.

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