Heavy call selling hits Westport

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.

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