CDC Corporation (CHINA) Sees Heavy Back-Month Call Trading

CDC Corporation (CHINA) has seen some heavy call trading this morning, as the shares have plummeted more than 3% with the rest of the market. The January 2010 2.50 call has traded more than 1,470 contracts this morning on open interest of 8,518 contracts. Most of the volume changed hands in small blocks at a price of $0.20. However, there was one large block of 200 contracts that traded at a price of $0.20, which was the bid price. It appears that most of today's volume changed hands at the bid price, indicating that these contracts were most likely sold. A trader could either be opening a new short position or closing out an existing long position in reaction to today's sharp decline in the shares.

Overall, Wall Street is optimistic toward the shares as four of the five analysts following CHINA rate it a "buy" or better. Any downgrades could spell trouble for the security.

Technically speaking, the shares of CHINA have bounced back from their lows and are down only 2.8%, but they are still below their 10-day and 20-day moving averages

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