Call spread stays bullish on Sina

optionMONSTER

A complex call trade tops today's option activity in Chinese media company Sina.

More than 22,000 options have already traded in the name this morning, exceeding its full-session average for the last month. Almost all of the volume is in one four-way spread.

The trade involved 5,000 each of the November and December 90 and 110 calls. optionMONSTER systems show that a trader sold the November 90 calls for $3.98 and bought the November 110 calls for $0.62, both below previous open interest. At the same time, he or she bought 5,000 December 90 calls for $5.87 and sold the December 110 calls for $1.66.

This is almost certainly the roll of the bullish vertical spread from November to December. The trader is spending $0.85 to get an additional month for the position to work. (See our Education section)

SINA is up 1.3 percent to $83.86 today. It was at a 52-high of $90.75 last week and above $110 in September 2011.


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