This complimentary article from Options Profits was originally published on September 27.
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: The touch-screen controller maker saw a spike in call buying yesterday as a buyer paid $0.25 for 10,000 November 6 calls to open a large position, nearly doubling the open interest in the name. Shares have shed nearly half their value since March and yesterday's buyer laid out nearly $300,000 in a position that will pay off if ATML rebounds, or some other catalyst lifts shares.
Goodyear Tire & Rubber
: Upside call buyers put on nearly 3000 October 13 calls on GT yesterday, as shares traded near $12.05, about the middle of the 52-week range for shares ($9.37 to $15.28). GT volume was also heavy on September 21 when October 13 puts were the focus and shares were near $12.79, so yesterday's call buyer may be locking in some profits from that purchase and looking for shares to lift.
: LPX was another name where call buyers stepped in, unfazed by the recent broad-market pullback. February 15 calls were bought for $0.70 about 4000x, opening a large new position struck nearly 19% above spot, and well above the 52-week closing high in shares ($14.89) set earlier this month.
: VIAB option volume has been picking up this week as well, with a 60,000 lot of December 60 calls purchased for $0.50 per contract on Monday. The buy was tied to 900,000 shares at $54.40 as a hedge, but shares have slid since that date, after a run of nearly 17% since July. VIAB shares have not traded north of $60 in more than a decade.
VIAB Daily Contract Volume
Source: Trade Alert
: Early flow on Thursday in MDT is very bullish, with more than 5000 calls trading in the first 15 minutes of the day and nearly all of that flow in a single sweep January 47 calls at the $0.55 offer price when shares were near $43.34.
MDT Option Dashboard
Source: Trade Alert
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At the time of publication, Henry Schwartz held positions in ATML.