Traders are hitting the road with Cooper Tire & Rubber, hoping for a strong set of numbers in the morning.
optionMONSTER's Heat Seeker monitoring program detected the purchase of 2,000 December 34 calls for $1 and $1.10. Volume was more than 22 times previous open interest at the strike, which indicates new money was put to work.
Rival Goodyear Tire & Rubber already beat estimates, driving its shares higher and delivering fat profits to holders of its calls. Traders are hoping for a similar outcome in Cooper Tire tomorrow.
Long calls lock in a potential purchase price. Their relatively cheap cost limits the amount of money at risk, while also resulting in significant leverage if a rally ensues. If it falls, only the premium is lost. (See our Education section)
CTB is up 1.28 percent to $33.23 this afternoon and 14 percent in the last month. Earlier in the session, the stock climbed back to its highest level since August 2013.
Total option volume in the name is 6 times greater than average, with overall calls outnumbering puts by almost 100 to 1.
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