Aluminum Corporation of China has been running, and the bulls
are looking for more upside.
optionMONSTER's Heat Seeker tracking system detected a flood of
call buying in the thinly traded Chinese company. The January 30
contracts traded 2,534 times, mostly for $0.50 to $0.55, though
volume was below open interest.
The November 27s changed hands mostly for $0.60 while the January
27s fetched about $1.20. Activity in both strikes was more than 7
times open interest.
ACH fell 0.95 percent to $25.14 yesterday and is up 22 percent in
the last month. The company is one of the most recent Chinese
stocks to attract bullish attention. There was also bullish
activity in Solarfun Power yesterday.
In recent weeks, the Heat Seeker also detected surges of call
buying in names such as Agfeed Industries and Sina. Separately
yesterday, investors bought calls on Brazilian lender Itau
The activity suggests that sentiment is brightening once again for
emerging-market stocks, which have started outperforming the
S&P 500 in the last three months after lagging in the first
half of 2010.
The call buying in ACH pushed total options activity in the name to
13 times greater than average, with calls accounting for 98 percent
of the volume.
(Chart courtesy of tradeMONSTER)