OptionsHouse

Options Trading News

September 14, 2012  Fri 11:16 AM CT

YNDX: SEE CHART GET CHAIN FIND STRATEGIES
One investor is giving Yandex room to run.

optionMONSTER's Heat Seeker tracking system detected a surge of call volume in the Russian Internet company. Trades of 4,000 contracts each crossed in the November 21 calls for $4.30 and the November 26 calls for $1.30, but volume was below open interest. The November 25 calls were then bought for $1.80 in a new opening position.

It appears the investor previously owned a bullish call spread in the 21s and 26s, but that strategy limits their gains at the $26 level. He or she closed it and made a straight purchase of the 25 calls, which have unlimited upside potential. They recovered $1.20 of capital in the process. (See our Education section)

YNDX rose 3.37 percent to $24.88 in early afternoon trading and is up 21 percent in the last month. It's been ripping higher as investors return to emerging markets, especially Russia.

Some 14,700 contracts have traded in the name so far today, more than 76 times the daily average. Calls outnumber puts by a bullish 880-to-1 ratio.
Share this article with your friends


Related Stories

YNDX

Yandex calls search for bounce

June 30, 2015

The company, which operates Russia's largest Internet search engine, gapped down after its last earnings report in late April and has been steadily losing ground since.

Invest Like a Monster - San Antonio: October 9-10

Premium Services

Archived Webinar

Education & Strategy

Real vs. Synthetic

We now know that there are two ways of creating a call position, a put position, and a stock position. We can simply use the actual real security or we can recreate it synthetically. We can create these positions in both long and short forms and this ability sets up an interesting scenario--an arbitrage!

View more education articles »