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.
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
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
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