Goodyear Option Ready to Roll

tdp2664
InvestorPlace
Market Outlook Our indicators for options trading investors are giving bullish readings, unchanged from last week. The bullishness is confirmed by our internal indicators, all of which are giving bullish readings. And volatility indexes continue to move lower. If this sounds like the same thing we said last week, well, it is. But until the tale of the tape says otherwise, the odds favor a continued move higher by the major indexes. Recommended Fast Options Trade: Goodyear Tire (NYSE: GT ) GT has broken above resistance at $15.50 and looks like it will continue moving higher. Here is the best way to play more strength in Goodyear Tire … Buy the GT Jul 17.5 Call up to 80 cents ($80 per contract). After taking the position, enter a good-til-cancelled contingent order to sell this option if the stock hits its target price of $17.90. That should give you an option price of about $1.70, for a 112% profit. Close this position and cut losses if the stock closes below $15.30, when the option price should be about 50 cents. The stock is currently trading at $16.20. The computer-simulated probability of this option hitting its target price is 24%. Find more option analysis and trading ideas at Options Trading Strategies . Recommended Fast Options Trade: Coventry Health Care (NYSE: CVH ) CVH had been in a tight trading range for about four months until breaking above resistance at $32. It should continue moving higher if stocks continue to rally. Here is the best way to play more strength in Coventry Health Care… Buy the CVH Jul 35 Call up to $1.45 ($145 per contract). After taking the position, enter a good-til-cancelled contingent order to sell this option if the stock hits its target price of $36.90. That should give you an option price of about $2.80, for a 93% profit. Close this position and cut losses if the stock closes below $33.20, when the option price should be about 90 cents. The stock is currently trading at $34.36. The computer-simulated probability of this option hitting its target price is 19%. ** All of our short-term recommendations can be taken for up to three days after they are recommended. Make sure the stock and option prices are close to where they were when we made the recommendation. If after three days you still have not gotten the position filled, cancel the order and wait for our new recommendations, as the profit probabilities may no longer be valid. Action to Take on Current Position: Cooper Industries (NYSE: CBE ) Close the CBE Jul 75 Call . The position reached its three-week maximum holding period Thursday without hitting its target price. Ken Trester is editor of the popular Maximum Options program. Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990.