Call options on 58.com are active today amid strong gains in shares of the operator of an online marketplace in China. WUBA shares are currently up almost 9.0% on the session, trading at $49.95 and the highest level since March. July expiry calls are seeing the most volume this morning, with the July 50.0 and 55.0 strike contracts trading more than 1,700 and 1,200 times respectively. Most of the 50.0 and 55.0 strike call options appear to have been purchased at average premiums of $1.83 and $1.00 in the early going. The Aug 55.0 strike calls are also changing hands, with more than 650 of those calls in play against zero open interest. It looks like most of the Aug 55.0 strike calls were purchased at an average premium of $1.95 each, positioning buyers to profit at expiration should shares in 58.com rally another 14% to exceed the breakeven price of $56.95. Second-quarter earnings from the China-based company are expected to be released in August.
Note: The material presented in this commentary is provided for informational purposes only and is based upon information that is considered to be reliable. However, neither PSW Investments, LLC d/b/a PhilStockWorld (PSW) nor its affiliates warrant its completeness, accuracy or adequacy and it should not be relied upon as such. Neither PSW nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this information. Past performance, including the tracking of virtual trades and portfolios for educational purposes, is not necessarily indicative of future results. Neither Phil, Optrader, or anyone related to PSW is a registered financial adviser and they may hold positions in the stocks mentioned, which may change at any time without notice. Do not buy or sell based on anything that is written here, the risk of loss in trading is great.
This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities or other financial instruments mentioned in this material are not suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only intended at the moment of their issue as conditions quickly change. The information contained herein does not constitute advice on the tax consequences of making any particular investment decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation to you of any particular securities, financial instruments or strategies. Before investing, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Contact us: support@philstockworld.com
© Copyright - PSW, LLC.
2024
