AsiaInfo pop draws cautious response

By David Russell,

Shutterstock photo

AsiaInfo-Linkage popped on takeover chatter today, but doubts persist.

optionMONSTER's Depth Charge tracking system detected the purchase of more than 2,700 March 10 puts for $0.45 against open interest of 1,397 contracts. The activity pushed total options volume in the name to quadruple the daily average.

ASIA is up 8.97 percent to $12.75 this morning and 46 percent in the last three months. The company ripped higher on Jan. 20 after announcing it had received a takeover offer from China's CITIC Capital China Partners II fund. It received another boost today after Reuters reported that U.S. firms including KKR and TPG Capital are also potential buyers.

The Beijing-based company provides telecommunications software and services on the Chinese mainland. While it has been rebounding recently, it's still down by more than 50 percent from its peaks in early 2010.

Puts outnumber calls by about 15 to 1 so far today, according to the Depth Charge.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.

This article appears in: Investing Options
Referenced Stocks: ASIA

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