Looks like protection against a >66% disaster. Only cost $5500 for about ~$250K of current value. This happened prior to last quarter as I recall. I thought the buy was out there waiting for a seller that never filled. But, I lost track of that transaction.
A couple of comments to just. This is the 3Q10 report coming on the 22nd, not the 4th. FMCN is a late reporter. So, year end and 4Q10 won't happen til late Feb 2011 or early March. The 1Q11 will be in mid May 2011. April is the only month open after the 4Th Q to establish a put position now. Near term months will open later and this trader may move the position.
Yeah, the level of the puts do matter. One 10K bulk is at $24 and another one at $16. $24 is already in the money (since we are down to $23 or so). Hmm...you got a very valid point, there is substantial support at the Fosun buy point $19. It is quite obvious that both those 10K positions are from a same buyer. So maybe this is a protective put nevertheless in case there is quite a letdown.
Regarding your buy into Nucor - it might well turn out to be a good way to play heavy construction. But I'm kinda still waiting for clear signal that there is a upswing. As you might know there were some recent downgrades in peers such as Arcelor etc based on steel oversupply and doubts about construction turnaround. But as they say, it is better to be early to the game than joining the main street. Have you looked at CCIH? This seems to be good play into China online content explosion that is playing out now. It is quite volatile, but seems to have lot of tailwind for sure.