Market News

October 14, 2016  Fri 7:16 AM CT

Traders are looking for to rally by Christmas.

optionMONSTER's monitoring program shows that about 4,700 December 47 calls were purchased for $2.25 to $2.40 yesterday. This represents new positioning, as volume well surpassed the strike's open interest of 940 contracts.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

CTRP fell 0.09 percent to $46.31 yesterday but is up more than 8 percent in the last month. The Chinese online travel agency is expected to report earnings after the close on Nov. 16.

Overall option volume in the name was twice its daily average yesterday. Calls outnumbered puts by a bullish 4-to-1 ratio.

News Archives

Education & Strategy

Using puts to BUY stock

Puts are an options contract that gives buyers the right to sell their stock for a set price on or before a future date. However, puts can also be an effective way to BUY stock.

More education articles »