Focus Media (FMCN) loses 26 cents to $21.99 and a Jan 17.5 – 30 risk reversal trades on the stock at 55 cents, 10700X. It appears that puts sold to buy calls and possibly closing a position opened a few weeks ago when a three-way spread was initiated on the Chinese media company. At that time, calls were sold to buy a Jan 12.7 – 17.5 put spread, 15000X (see 6/20 color). Shares are up about 3 percent since that time and, if closing, today’s bullish combo might reflect dimishing concerns about a decline in the share price during the second half of 2012. Note: To see previous notes on a ticker, enter the ticker in Flow Monitor (WhatsTrading Premium Product), select 1, and then + for More. You can see the past notes and, not only the change in the stock price, but also change in implied volatility.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.