GT – Goodyear Tire & Rubber Co. – The Ohio-based manufacturer of tires and other rubber products enticed bullish investors to the front month in morning trading despite the 0.33% decline in its share price to $12.02. Optimistic options players are positioning for a sharp rebound in GT’s shares by purchasing roughly 3,600 calls at the June $12.5 strike for an average premium of $0.29 per contract. Call-buyers make money if shares of the underlying stock rally 6.40% from the current price of $12.02 to surpass the average breakeven price of $12.79 by June expiration day. The jump in investor demand for calls on Goodyear bumped up the stock’s overall reading of options implied volatility 14% to 59.53% as of 11:10 am (ET).
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Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.
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