KongZhong gets vote of confidence
Chris McKhann | [email protected]
optionMONSTER systems show that 3,300 November 10 puts have been sold for the bid price of $0.30 on a wide bid/ask spread. The volume was twice the previous open interest, so this is clearly a new position.
The put selling is a bet that KONG will hold above $10 through that November expiration. The trader takes on the risk of having to buy shares if they are below that level. (See our Education section)
KONG is up 5.83 percent to $12.86, making up for losses at the end of last week. Shares hit a high of $14.92 at the start of the month but were down at $10 just two days before that peak.
About 3,600 KONG options have changed hands, compared to the daily average of 726 for the last month.