China travel site Ctrip.com is seeing heavy put volume today, in front of Wednesday’s earnings. 22,000 Puts have traded, vs 1000 calls, and flow is dominated by the May 20-23put spread sold 8000x for 2.45 against a buy of 4000 May 19puts for 90cents when shares were at $18.97. The May 23Puts are the largest block of open interest in the name, so today’s spread appears to roll some long puts down a bit and into a ratio while taking some gains on the winning position. The May 23P were bought on APril 20 for 65cent when shares were near 21.29.
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Henry Schwartz is the president of Trade Alert LLC, a provider of real-time options analysis tools to leading Wall Street firms. His systems analyze hundreds of thousands of transactions per second to help professionals identify and interpret market activity in real time, supporting informed trading decisions and intelligent idea generation. He has held institutional trading and management roles with Bank of America, Bear Stearns, Salomon Brothers and the Hull Group, and made markets on the CBOE and AMEX floors in the US, and EUREX and MONEP overseas. Prior to founding Trade Alert, he led the electronic market-making group at Bank of America coincident with the launch of the International Securities Exchange. He received his bachelor’s degree in Economics from the University of California, San Diego and his MBA from NYU’s Stern School of Business.