By Pete Najarian, co-founder of OptionMonster
NEW YORK -- Genworth (GNW) has been performing well along with other financials, and Monday the option activity again turned bullish on the name.
OptionMonster's tracking systems detected heavy buying in the April 10 calls for 12 cents to 18 cents. Then when the shares started climbing, those contracts ran up to 25 cents by late in the session. More than 26,000 of the calls changed hands, far above the strike's existing open interest of just 333 contracts, clearly showing that this is new activity.
These calls lock in the price where investors can buy shares, which can result in major leverage if a stock moves in the right direction. And that's exactly what happened Monday with Genworth.Its shares closed the session up 6.69% to $9.09. The company, which offers insurance and investment services, is up more than 50% since the beginning of December. Total option volume in the name was seven times greater than average Monday. Overall calls outpaced puts by 7-1, a reflection of the bullish sentiment. Najarian owns GNW calls.
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