Q2 STOCKS TO BUY

Why Goodyear Stock Could Keep Rolling Higher

Goodyear Tire & Rubber shares are continuing to roll up the charts, but put buying is still popular

Jun 13, 2017 at 12:00 PM
facebook X logo linkedin


Tire manufacturer Goodyear Tire & Rubber (GT) has been a long-term outperformer on the charts. Year-over-year, the shares have added roughly 29.5%, and are back atop familiar support at the $34 level. In fact, GT recently pushed through the closely watched 50-day moving average, and could now be poised to take out its March highs.

 

170609gt

 

There are plenty of skeptics across Wall Street, too, which may explain why there's almost no growth priced into the stock at the moment, illustrated by its price-to-earnings ratio of just 7.49 – one of the lowest in the S&P 500 Index (SPX). Plus, short sellers control 7.3 days' worth of buying power, based on average daily volumes. However, short interest is down 15.1% in the last two reporting periods, and if this trend continues, the stock could keep gaining on the charts.

It's also worth noting that short-term options traders are unusually put-skewed. This is based on Goodyear's Schaeffer's put/call open interest ratio (SOIR) of 1.80, which ranks in the 94th annual percentile. An unwinding of these seemingly bearish positions could help the stock, as well.

Finally, it's a good time to target GT options. This is based on the stock's Schaffer's Volatility Index (SVI) of 23%, which ranks in the low 8th annual percentile, hinting at low volatility expectations for near-term options.

Subscribers to Schaeffer's Weekend Trader Series options recommendation service received this GT commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.
 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter