Trade sees ceiling in Giant Interactive
David Russell | firstname.lastname@example.org
optionMONSTER's tracking systems detected a surge of volume in the July 5 and August 5 calls. About 3,900 of the July contracts traded for $0.05, and 8,400 August options changed hands for $0.20.
Volume was below open interest in the July calls, which suggests that a previously established short position was being closed and rolled forward by one month. The investor collected an additional $148,500 of income while more than doubling the size of the bet.
He or she may own shares in the Chinese game developer or may simply have a negative sentiment on the name. If it closes above $5 on Aug. 17, the short calls will become a short sale on the stock. (See our Education section)
GA fell 1.20 percent to $4.93. It's fluctuated between $3 and $5.50 since last September and more recently has been trapped below its 50-day moving average. Some chart watchers may consider that level resistance, which would explain yesterday's call selling.
Overall option volume was 34 times greater than average in the session.