Options volume surged and implied volatility in Goodyear Tire (GT) is higher after the company warned at a Deutsche Bank conference that nice weather is taking a toll on winter tire sales. Shares are off $1.42 to $13.86. Meanwhile, 21,000 puts and 9,720 calls traded on the stock, which is 6.5X the daily average. Jan 14 puts, which are now 14 cents in-the-money and expiring at the end of next week, are the most actives. 5,380 traded. Jan 15, Feb 14, and April 15 puts are seeing interest as well, in smaller lots. The top trade is 500 Feb $14 puts on the 75-cent bid. Meanwhile, implied volatility in Goodyear Tire options is racing higher today — up 28 percent to 52.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.