A large call sale leads today’s option activity in fuel-systems technology company Westport Innovations.
optionMONSTER’s tracking systems show that a trader sold 5,131 October 16 calls for the bid price of $0.60 today. Open interest in the strike was just 81 contracts before the trade appeared, so it is clearly a new position.
The calls could have been sold naked with an initial bearish bias. Alternatively, they could have been traded against an existing long position in a covered-call position, which would be bullish but only up to the $16 strike price.
— Option Monster