Credit: Shutterstock photo(The following is an example of notable trading cited on optionMONSTER's InsideOptions Pro service yesterday.)
Autos have been one of the strong spots in the market, and yesterday the bulls turned to Fiat Chrysler Automobiles.
optionMONSTER's Heat Seeker system detected the purchase of about 10,000 September 16 calls for $1.40 to $1.60 in the session. Volume was more than 40 times the previous open interest in the strike, indicating that new money was at work.
Long calls lock in the price where investors can buy a stock. They're used to position for gains inexpensively and to limit risk, but they can also generate significant leverage if a rally occurs. (See our Education section)
FCAU rose 1.24 percent to $15.50 yesterday and is up 34 percent this year. Created from the merger of Italy's Fiat with Michigan's Chrysler, the company's brands also include Alfa Romeo, Ram, and Jeep. Sales have been growing rapidly since late 2014 but missed estimates the last time they were reported on Tuesday. Quarterly results are due April 29.
Total option volume was 7 times greater than average in the session, with calls outnumbering puts by a bullish 62-to-1 ratio.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
