Implied volatility in SINA is up sharply amid active trading in the call options on the Chinese Internet company. SINA is down 75 cents to $47.70 on volume of 1.95 million and giving back some of the 6.5 percent rally seen over the previous two trading sessions. At the same time, about 23,000 calls and 6,000 puts traded on the stock. The projected volume of almost 50K is amost 3X the norm for the Sina. Most of the action has been in small lots. The top trade is a Sep 47.5 – 52.5 call spread for $2.29, 621X on ISE. A customer bought the spread to open, 700X, according to ISEE. Weekly 52.5, Aug 50, Weekly 50, Sep 52.5, and Weekly 55 calls are the most actives. Heavy trading in upside calls has lifted 30-day ATM vols up 16.5 percent to 72. No news on the ticker. SINA was the subject of higher call volume Friday as well, led by an opening buyer of Jan 57.5 – 62.5 call spreads.
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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.