Unusual Option in Pre-Earnings Trading: Goodyear (GT)

Posted in Options 
July 29th, 2009

Goodyear Tire & Rubber Co. (NYSE: GT) has just seen some very unusual options trading today. Normally we might not care, but this is just a day ahead of its quarterly earnings report. We have seen 25,620 contracts trade in the OCT-2009 $17.50 CALL options. The prior open interest was only 1,683 and we have at least 20,000 of those as a buy. That figure looks to be more than all of the open interest of the near strike prices combined. As far as how this compares and stands out wildly, the AUGUST-2009 $15.00 CALL options have traded only 1,510 contracts and that prior open interest was 2,109. There was only one other CALL that traded actively. That was the JAN-2010 $17.50 CALL, which traded 1,696 contracts versus an open interest of 585 before today.This one single unusual options trading event is actually far larger than all other PUT and CALL total activity among all strike prices and all options expiration dates we have available.

JON C. OGG
JULY 29, 2009

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