Bull books a ticket with Ctrip.com
Ctrip.com is at its best level in two years, and one trader is looking for another run higher.
optionMONSTER's Heat Seeker system shows that a trader bought 5,000 December 55 calls for $1.85 and sold the same number of December 60 calls for $0.90, below the bid price at the time. The open interest at each strike was below 100 contracts, so this is new positioning.
The vertical spread cost $0.95 to open, which is the maximum amount that could be lost on the trade. The maximum gain would be $4.05 if CTRP is above $60 at expiration. (See our Education section)
The Chinese travel company has been gaining in recent months, more than doubling since April. CTRP is up 0.65 percent to $46.27 this afternoon, on track for its highest close since August 2011. It reached an all-time high just above $53 at the end of 2010.
Nearly 18,000 CTRP options have traded already today, 7 times its full-session average for the last month. Of those, only 142 are puts.
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