Dana Holding fell on a poor earnings report in late last year,
but now the bulls are back.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 1,500 June 20 calls for $1.75. Equal amounts were sold
at the same time in the June 18 puts for $1 and the June 22 calls
for $0.85. Volume surpassed open interest at all three strikes,
indicating that new positions were initiated.
The investor collected a credit for $0.10 and stands to earn $2
more if the auto-parts maker closes at $22 or higher on expiration.
He or she is also on the hook to buy shares for $18 if they go
below that level, but the stock peaked around that price in March,
which could make the trader expect support and feel comfortable
writing the puts. (See our
section for more the strategy, which combines
DAN is up 1.37 percent to $19.88 in afternoon trading. It peaked at
$23.46 in October but then gapped down to $19 after quarterly
results missed expectations. Today's bullish three-way trade is
looking for that bearish move to be retraced, possibly when the
next numbers are released on Tuesday, Jan. 14.
Total option volume is 8 times greater than average in the name,
according to the Heat Seeker.
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