Titanium Metals Corp. (NYSE: TIE) is seeing severe options trading. The October $10 calls have traded more than 14,000 contracts with open interest of just 1,867 contracts as traders place large buy orders at the offer. The action comes a day after I recommended buying TIE on valuation due to comments from Boeing on the improving aviation forecast for 2011. Shares today broke above its 200 day EMA implying a move to at least $10.50 on the triangle breakout, and near an inverse head and shoulders breakout on the weekly. TIE is also often mentioned in takeover chatter. As of 12:55 PM EST the stock is up 6% at $9.41 and there have also been some 3.1 million shares that have traded hands. The 52-week range is $4.04 to $13.18 and the average volume is just under 3.2 million shares.
Joe Kunkle, OptionsHawk.com
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