The Goodyear Tire & Rubber Company (GT) is a manufacturer of tires. The stock is currently trading around $23.85 in a 52 week range of $12.95-$28.48. The stock is basically unchanged this year with shares gaining less than 0.50% on the year. Options traders seem to be expecting some upside in GT as some bullish orders have been hitting the tape today. Earlier this morning a trader bought 3,017 GT May 23rd weekly 24 calls for $0.64. This is a very bullish trade with a short time until expiration. Although shares of GT are trading below the Ichimoku Cloud its possible this institutional trader is looking for a quick pop in GT. This trader is risking $193,000 on this trade with only 8 days to expiration. Bets this large are worth paying attention to as they can lead moves in the stock, an aggressive trader may find opportunity for a long in GT here.
Block trade: Trader bought the GT May 23rd Weekly 24 Calls for $0.64
Risk: $64 per 1 lot
Reward: Unlimited
Breakeven: $24.64
James Ramelli
KeeneOnTheMarket.com
