One investor is giving Yandex room to run.
optionMONSTER's Heat Seeker tracking system detected a surge of
call volume in the Russian Internet company. Trades of 4,000
contracts each crossed in the November 21 calls for $4.30 and the
November 26 calls for $1.30, but volume was below open interest.
The November 25 calls were then bought for $1.80 in a new opening
It appears the investor previously owned a
bullish call spread
in the 21s and 26s, but that strategy limits their gains at the $26
level. He or she closed it and made a
of the 25 calls, which have unlimited upside potential. They
recovered $1.20 of capital in the process. (See our
YNDX rose 3.37 percent to $24.88 in early afternoon trading and is
up 21 percent in the last month. It's been ripping higher as
investors return to emerging markets, especially Russia.
Some 14,700 contracts have traded in the name so far today, more
than 76 times the daily average. Calls outnumber puts by a bullish
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.