What put action means in Focus Media

By
A A A

Focus Media is trying to rebound, and one investor is keeping it on a tight leash.


optionMONSTER's Depth Charge tracking system detected the purchase of about 3,000 October 30 puts for $1.47 to $1.49. A matching number of October 26 puts were sold at the same time for $0.42 against open interest, which indicates that an existing position was rolled to the higher strike.

The trade cost about $1.06. It raises by $4 the level at which the investor is protected on his or her position in the Hong Kong-based advertising company, which operates thousands of video screens in buildings across mainland China.

FMCN is down 0.76 percent to $31.48 and has been consolidating after a big rally in the first five months of 2011. It's been making higher lows since June and following its 200-day moving average higher, which some chart watchers may consider evidence it remains in a bullish uptrend.

The last earnings report on Aug. 22 was bullish, with revenue growing 46 percent and management forecasting continued strength.

Overall option volume in FMCN is 4 times greater than average so far today, with puts outnumbering calls by 12 to 1, 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 The NASDAQ OMX Group, Inc.

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



This article appears in: Investing , Options

Referenced Stocks: FMCN

optionMONSTER

optionMONSTER

More from optionMONSTER:

Related Videos

Top Home Financing Myths
Top Home Financing Myths            

Stocks

Referenced

Most Active by Volume

64,655,493
  • $17.88 ▼ 1.38%
53,363,101
  • $18.51 ▼ 6.98%
42,789,793
  • $94.01 ▼ 1.26%
40,818,762
  • $121.30 ▼ 0.87%
38,086,152
  • $23.28 ▼ 9.17%
36,103,930
  • $14.20 ▼ 0.77%
31,870,696
  • $14.83 ▼ 1.79%
29,019,850
  • $46.70 ▼ 0.38%
As of 7/31/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com