Trade of the Day: Goodyear Tire & Rubber Co (NASDAQ:GT)

To receive further updates on this Goodyear Tire & Rubber Co (NASDAQ:GT) trade as well as an alert when it’s time to take profits, sign up for a risk-free trial of Momentum Options today.

Although earnings season is still a few days away, it is always good to look ahead and do some early homework. I normally don’t take too many earnings trades, and I intend to be out of the following Goodyear Tire & Rubber Co (NASDAQ:GT) trade well ahead of its announcement, which is due to be released the last week of October.

Goodyear has beaten expectations during the past four quarters by $0.13, $0.01, $0.18 and $0.02, respectively. But, while I like the fundamental setup for the company, the technical setup on the stock is what attracted me to play this bullish call option:

Buy to open the GT October 33 calls (GT161021C00033000) for a maximum price of $0.80.

Wednesday’s high tapped $32.97. Resistance is at $32.75–$33. Support is at $32.25–$32. I would like to see shares rally to the mid-$30s ahead of GT’s earnings announcement. This would ensure a triple-digit return for our trade, as the GT October 33 calls would be at least $2 in the money if shares clear $35 by Oct. 21.

To receive further instructions on this trade, please sign-up for a risk-free, 60-day trial of Momentum Options and take advantage of 50% off the introductory rate for the next three days only.


Article printed from InvestorPlace Media, https://investorplace.com/2016/10/trade-day-goodyear-tire-rubber-co-nasdaq-gt/.

©2022 InvestorPlace Media, LLC