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.
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Tags: WUBA
This entry was posted on Thursday, June 26th, 2014 at 1:43 pm and is filed under Uncategorized. You can leave a response, or trackback from your own site.
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