By David Russell of OptionMonster

NEW YORK -- Goodyear Tire & Rubber's (GT - Get Report) recent selloff is drawing bullish option trades. 

OptionsMonster's tracking programs detected the purchase of about 3,600 November 23 calls, most of which priced for $1. This is clearly fresh buying because the volume was more than six times the strike's previous open interest in the bullish trade, which was noted by OptionMonster co-founder Pete Najarian on CNBC's "Fast Money" show Monday night. 

These long calls lock in the price where investors can buy stock in the tire company, letting them play for a rally while paying only a fraction of the share price. That helps manage risk because only that option premium can be lost if the stock falls. 

Goodyear fell 0.31% to $22.27 on Monday and is back to levels last seen in late 2013. It's been reeling in the wake of a bad quarterly report on July 30 and as the broader auto group has declined. 

Monday's total option volume in Goodyear was twice its daily average for the last month. Overall calls outnumbered puts by about 9 to 1, a reflection of the session's bullish sentiment. 

Russell has no positions in GT.

 

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.