Chinese Internet stocks have been incredibly strong recently,
and the lighting struck Youku Todou on Friday.
optionMONSTER's Heat Seeker tracking system detected unusual
activity in the August 19 calls, with some large blocks snapped up
early for $2.35 to $2.50. More than 2,600 contracts changed hands
at the strike by the closing bell.
lock in the price where stock can be purchased in the Beijing-based
company, which provides streaming videos. Given their relative
cheapness, they can generate some significant leverage from even a
modest move in the share price. That happened on Friday as YOKU
kept nudging higher, and at one point those calls traded for as
much as $3.30--a gain of about 40 percent. (See our
YOKU closed Friday at $21.27, up 3.76 percent on the session. It's
been lagging its peers and is ranked by our r
service as the worst-performing Chinese Internet stock in the last
three months. Others such as Sina and Baidu have been knocking the
cover off the ball in recent weeks.
Overall option volume in Youku was 7 times greater than average in
the session. Calls accounted for four-fifths of the total.
(A version of this post appeared on
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.