Options activity is heating up in Sina ahead of the online media company's earnings report tomorrow.
Trading was concentrated on the Sina September 40 contracts, where 5,747 calls traded Friday from $1.35 to $1.70, according to OptionMonster's tracking systems. That dwarfed the 20-day average volume of just 48 calls and was more than triple the open interest at that strike.
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Traders were also buying the September 45 calls, where 1,841 changed hands for $0.55 to $0.75, compared with open interest of 550 and an average volume of just 6 contracts. Both contracts would require a significant pop by their September expiration to turn a profit.
Shares of the Shanghai-based company rose 0.7 percent Friday to $33.23 but slipped in after-hours trading to below $33. The China-based company is scheduled to report its quarterly results tomorrow after the closing bell.
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