Options News
Call prices tread higher in $GT
Option traders tripled their money in Goodyear Tire & Rubber (GT) today. On Dec. 30, Market Rebellion’s Unusual Activity Scanners showed that 6,350 Weekly $10.50 calls, expiring today, Jan. 8, were bought for $0.30 to $0.33 above open interest of 59 contracts with shares at $10.40. Those calls sold for $1.17 this morning, more than 3.5 times […]
Option traders tripled their money in Goodyear Tire & Rubber (GT) today.
On Dec. 30, Market Rebellion’s Unusual Activity Scanners showed that 6,350 Weekly $10.50 calls, expiring today, Jan. 8, were bought for $0.30 to $0.33 above open interest of 59 contracts with shares at $10.40.
Those calls sold for $1.17 this morning, more than 3.5 times their purchase prices. The stock rose 12.4% in the same time frame, underscoring how quickly options can far outperform their underlying shares.
Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.
GT jumped 6.7% to $11.46 today. The tire manufacturer was upgraded to Overweight from Sector Weight at KeyBanc this morning.