Calls Purchased on Owens-Illinois (OI)

Shares of Owens-Illinois Inc. OI are lower on the session by 7.81%, currently trading at $27.51. The stock has tested and failed at the 50-day moving averages, which is a significantly bearish sign. Calls are being purchased on the name today, though. The September $31.00 call was purchased 2,200 times on open interest of 47 contracts and the January 2011 $40.00 call was purchased 2,200 times on open interest of 5,691 contracts. This appears to be call buying as hedges to short shares. Call volume is now running at 9.55x the daily average. Owens-Illinois, Inc. is a global manufacturer of glass containers with 78 glass manufacturing plants in 21 countries. It produces glass containers for beer, ready-to-drink low alcohol refreshers, spirits, wine, food, tea, juice and pharmaceuticals.