Missouri版 - zz Call Players Dismiss Renren's Facebook-Related Nosedive |
|---|
|
|
|
|
|
|
G****a
发帖数: 10208 | 1 Shares of China-based Renren Inc. (RENN - 5.47) have plummeted today, after
sector peer Facebook (FB - 41.02) made its widely anticipated market debut.
However, call players seem to have shrugged off the decline, as roughly 28,
000 of these contracts have changed hands, which is four times the equity's
expected intraday volume. Nearly 11,700 calls have crossed at the near-the-
money May 6 strike, and are equally divided between the ask and bid prices,
signaling a mix of buyer- and seller-fueled activity. This option currently
carries open interest of 11,655 contracts, so it cannot be said with
certainty whether new last-minute positions are being opened here. However,
with the stock's current decline -- and the fact that front-month expiration
is today -- it's possible that some traders are closing their positions.
This affinity for calls over puts is business as usual for the social
networking platform. The 50-day International Securities Exchange (ISE),
Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put
volume ratio sits at 2.69, confirming that calls have more than doubled puts
during the past few months. This ratio registers in the 56th annual
percentile, indicating that traders have been scooping up bullish options
over bearish at a slightly accelerated clip.
However, it should be mentioned that short interest on the Internet issue
soared by almost 39% during the last two reporting periods, and now makes up
a respectable 7% of RENN's float. This raises the possibility that short
sellers looking to hedge their positions could be contributing to some of
the aforementioned buy-to-open call volume.
From a technical perspective, RENN has advanced more than 54% year-to-date,
and has bested the broader S&P 500 Index (SPX) by roughly 26% during the
past 60 days. On the charts, the stock will likely close a second straight
week below its 10-week moving average, which had previously served as
support since mid-January.
In the afternoon hours of trading, RENN is off more than 12% to linger in
the $5.47 area. |
|
|
|
|
|
|
|
