A generic image of a person stacking coins next to a calculator.
Markets

Ctrip.com seen staying close to home

Ctrip.com has started to move higher in recent sessions, but one investor apparently thinks that it won't journey far.

optionMONSTER's tracking systems detected the sale of 2,150 May 35 puts for $0.67 and an equal number of May 45 calls for $0.78, resulting in a credit of about $1.45. Volume was more than 20 times open interest in both strikes.

This short strangle position will profit from the Chinese travel stock remaining in a range. If it's between $35 and $45 on expiration, the investor gets to keep the credit. (See our Education section)

CTRP rose 1.59 percent to $40.32 in morning trading and is up 8 percent in the last week. The company had been growing rapidly but has languished along with other Chinese stocks since late 2010 as investors worry about inflationary pressures.

The last earnings report on Feb. 14 beat expectations, though revenue guidance was below consensus estimates.

Today's trade pushed total option volume in CTRP to more than four times the daily average.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

TCOM

Other Topics

Options

Latest Markets Videos