Options Trading News

May 7, 2012  Mon 9:36 AM CT

Puts are dominating the option activity in Ctrip.com today as it trades just off Friday's lows.

CTRP is up $0.03 to $19.94 after trading down to $19.44 during the previous session. Shares of the Chinese travel-service provider were above $22 two weeks ago and $28 two months ago.

Almost 5,000 CTRP options have traded so far this morning, compared to an average of 2,500. Almost all of the action is in one put spread.

A trader sold, 2,440 May 23 puts for $3.24 against open interest of 10,447 while buying 2,440 May 21 puts for $1.69, according to optionMONSTER's Depth Charge system. Volume at the latter strike was twice the open interest and therefore a new position.

This could be a put credit spread, which would look for the stock to be above $23 by expiration. But it is far more likely that the trader is rolling the position down from the May 23 contracs to the 21s, taking profits but still holding in-the-money puts to take advantage of more downside. (See our Education section)
Share this article with your friends

Related Stories


Momentum bulls ride Ctrip.com

November 25, 2015

The Shanghai-based online travel agency gapped up after reporting bullish quarterly numbers last Thursday, and a large trade is looking for more gains.


Bulls book tickets on Ctrip.com

November 2, 2015

Shanghai-based online travel agency has beaten earnings and revenue expectations for the last five quarters, and traders are looking for more gains.


Premium Services

Education & Strategy

The art of trading

As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »