Goodyear Tires beat earnings estimates in their Wednesday morning report, leading shares to open sharply higher. And that's good news for the many options traders who bought bullish call options on the company ahead of time, allowing them to double their money in less than 24 hours.
As the stock rose on Tuesday on the eve of the earnings report, options traders looked out to January, buying the January 23-strike calls for about $1 per share. With more than 5,000 of the calls trading, they were the most popular options on a day that saw more than six times the average daily call volume.
Share prices of Goodyear were up more than 7.5 percent Wednesday morning.