Bulls bet on Ctrip.com traveling higher
David Russell | [email protected]
optionMONSTER's Heat Seeker tracking system detected the purchase of more than 2,800 January 26 calls for $0.25 to $0.35. Volume was almost 5 times open interest in the strike.
CTRP is up 2.27 percent to $24.35 in afternoon trading and at one point was up more than 8 percent. The Chinese online travel agency reported weaker-than-expected earnings and revenue the last time it issued results on Nov. 14. Guidance was also weak.
Nonetheless, in the last month, the stock has been stabilizing above $22 after plunging roughly 50 percent since the end of July.
The date of the next earnings release hasn't yet been announced, but it will probably be in mid-February, based on last year. Given that those January 26 calls expire at the end of next week, today's buyers are looking for a run even sooner.
Overall option volume is 7 times greater than average so far today, with calls outnumbering puts by 6 to 1.