5 Names Seeing Bullish Flow

This complimentary article from Options Profits was originally published on September 27.

Options, Futures, Commodities... CLICK HERE to check out OP free for 14 days

WEBINAR: VIX On Five Highly Active Stocks, Weds., October 3 at 6pm ET w/Mark Sebastian and Jill Malandrino. CLICK HERE FOR INVITE AND TO REGISTER.

Atmel (ATML): 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 (GT): 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.

Louisiana Pacific (LPX): 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.

Viacom (VIAB): 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

 

Medtronic (MDT): 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

OptionsProfits can be followed on Twitter at twitter.com/OptionsProfits.

If you liked this article you might like

Atmel (ATML) Stock Closed Down Today on Earnings Miss

Atmel Isn't Taking Approval of Microchip Deal for Granted

Chip Stocks Climb on Strong Earnings, M&A hopes

Stocks Slash Earlier Losses in Final Hour of Trading

Stocks Extend Slide as IBM Drags on Dow