Navistar is trucking higher once again after a sharp pullback
earlier in the year.
optionMONSTER's Heat Seeker found activity in the January 55 calls
and the January 65 calls on Friday. The trade appeared to be a
vertical spread, with the 55s bought for $1.55 to approximately
$1.84 and the 65s sold for $0.17 to $0.30. (See our Education
Volume was about 2,000 contracts in each strike. Total option
volume in NAV is 6 times greater than average Friday, and calls
account for 96 percent of the paper.
Navistar, which makes trucks, engines, and associated parts,
reported weak earnings in its last release on Sept. 8. Since then
the stock found support at $40, rebounded higher, and now is back
above its 200-day moving average (purple line on chart). It's
finished last week at $49.53, up 4.74 on the session.
(A version of this post appeared on InsideOptions on Friday.
Chart courtesy of tradeMONSTER.)
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