A trader is positioning for a possible decline in Goodyear Tire & Rubber by early next year.
optionMONSTER's monitoring program detected the purchase of 2,200 January 27 puts in one print for $1.75 yesterday. Volume was more than 6 times the open interest in the strike, showing that this is a new position.
Long puts lock in the price where a stock can be sold, so they make money to the downside. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)
GT fell 0.45 percent to $31.25 yesterday and is down 4 percent in the last three months. The tire manufacturer reported bullish results on Feb. 9 and is expected to announce its next earnings numbers on April 28.
Overall option volume was about average in GT yesterday. Puts outnumbered calls by a bearish 14-to-1 ratio.
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