Schaeffer's Top Stock Picks for '25

3 China-Based Stocks Rewarding Option Bulls

Weibo Corp (ADR) (NASDAQ:WB), SINA Corp (NASDAQ:SINA), and Qihoo 360 Technology Co Ltd (NYSE:QIHU) are flying high

Oct 16, 2015 at 12:43 PM
facebook X logo linkedin


Chinese markets soared overnight, and a number of U.S.-listed stocks are also shooting higher today, amid the latest round of M&A rumblings. In particular, Weibo Corp (ADR) (NASDAQ:WB), SINA Corp (NASDAQ:SINA), and Qihoo 360 Technology Co Ltd (NYSE:QIHU) are each flying up the charts today -- likely to the delight of options traders.

WB was last seen 13.3% higher at $15.55, and has now powered back into positive year-to-date territory for the first time since early August. From a slightly longer-term basis, October has been a boon to the shares, which have jumped 33% month-to-date. Amid these gains, short-term speculators have grown call-skewed toward Weibo Corp. Specifically, the stock's Schaeffer's put/call open interest ratio (SOIR) checks in at 0.41 -- in the bottom quartile of its annual range.

SINA has popped 8.3% to trade at $47.23 -- more of the same for a stock that's advanced over 26% in 2015. In fact, since touching their most recent low of $32.61 in late August, the shares have exploded 45% to the upside. Not surprisingly, option traders have been buying to open SINA Corp calls over puts at an extreme pace in recent weeks. The equity's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 8.67 registers at the top of its annual range.

Finally, QIHU has tacked on 3.2% to trade at $55.33, as it continues to cruise atop its rising 10-day moving average. Nonetheless, the shares are still sitting on a 3.4% year-to-date deficit, and are approaching a potential layer of resistance at their descending 80-day trendline. These longer-term struggles haven't shaken the confidence of option bulls. In fact, Qihoo 360 Technology Co Ltd sports a 10-day ISE/CBOE/PHLX call/put volume ratio of 10.10 -- with more than 10 calls bought to open for each put. More significantly, this ratio ranks just 4 percentage points from an annual acme.
 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?