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Bulls Are Targeting Genworth Again

Total return from offer price: -63.33% Offer Price: $19.50 Offer date: 5/24/2004 First day return: N/AIPO deal size: $2.82 billion Industry: Multi-Line Insurance
Photo: Genworth.com
Total return from offer price: -63.33% Offer Price: $19.50 Offer date: 5/24/2004 First day return: N/AIPO deal size: $2.82 billion Industry: Multi-Line Insurance

Genworth Financial has been performing well along with other financials, and yesterday the option activity again turned bullish on the name.

OptionMonster's tracking systems detected heavy buying in the April 10 calls for $0.12 to $0.18. Then when the shares started climbing, those contracts ran up to $0.25 by late in the session. More than 26,000 of the calls changed hands, far above the strike's existing open interest of just 333 contracts, clearly showing that this is new activity.

These calls lock in the price where investors can buy shares, which can result in major leverage if a stock moves in the right direction. And that's exactly what happened yesterday with Genworth.


Genworth shares closed the session up 6.69 percent to $9.09. The company, which offers insurance and investment services, is up more than 50 percent since the beginning of December.

Total option volume in the name was seven times greater than average yesterday. Overall calls outpaced puts by 7 to 1, a reflection of the bullish sentiment.

—By CNBC Contributor Pete Najarian

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Options Trading School:

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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com. Najarian owns GNW calls.

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