Goodyear pullback brings out buyers
Goodyear Tire & Rubber has pulled back to a key support
level, and the bulls stepped in yesterday.
optionMONSTER's Heat Seeker scanners detected massive bullish option buying in the tire company, with more than 26,000 May 13 calls traded in volume that dwarfed the previous open interest of just 729 contracts. The calls went for $0.30 and $0.35 in early blocks, then fetched as much as $0.50 by late in the afternoon.
These long calls lock in the price where investors can buy shares and can provide significant leverage on a percentage basis, something that could be seen clearly in yesterday's session. (See our Education section)
GT ended the day higher by 2.22 percent at $12.43. The bounce came after it returned to the $12 level that was resistance several times in late 2012, which could be leading some chart watchers to believe that it's ready to start climbing again.
The company hasn't yet announced the date of its first-quarter earnings report but last year it occurred on April 27. Those May 13s will provide exposure through the release if they follow a similar schedule.
Total option volume was 15 times greater than average in the session, with calls outnumbering puts by more than 12 to 1.
(A version of this post appeared on InsideOptions Pro yesterday.)