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.