AAL

History Says to Sell This Chinese Stock Right Now

Put buyers have targeted HUYA in recent weeks

Dec 24, 2018 at 12:15 PM
facebook X logo linkedin


The shares of Guangzhou-based broadcasting name HUYA Inc (NYSE:HUYA) hit a record low of $14.44 on Dec. 7, after the arrest of a top Huawei exec sparked a sell-off in Chinese stocks. A short-lived bounce was quickly contained by the equity's descending 40-day moving average, and previous such signals have marked good selling opportunities on the stock.

Per data from Schaeffer's Senior Quantitative Analyst Rocky White, there have been two other times HUYA stock has come within one standard deviation of its 40-day trendline after trading below it for 60% of the time in the past two months, and closing below it in eight of the last 10 sessions. These previous signals have resulted in a negative one-month return of 24.33%.

Looking closer at the charts, HUYA stock began trading on the New York Stock Exchange (NYSE) on May 11 at $15.50. The shares climbed as high as $50.82 on June 15, but have trended steadily lower since tagging that notable milestone, and are currently pacing for a fourth-quarter loss of 35.5%. Today, Huya shares are down 2.8% at $15.14.

huya stock daily price chart dec 24

Options traders have been bracing for more losses, per the stock's top-heavy 10-day put/call volume ratio of 1.16 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The weekly 12/28 16.50-strike put has seen one of the biggest increases in open interest over this two-week time frame, and data points to buy-to-open activity here.

 

 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.