2 Ways to Play Puts on NQ Mobile Inc (ADR) (NQ) Ahead of Earnings

NQ Mobile Inc (ADR) will unveil three quarters' worth of earnings reports after tonight's close

by Karee Venema

Published on Dec 18, 2014 at 10:37 AM
Updated on Apr 20, 2015 at 5:32 PM

NQ Mobile Inc (ADR) (NYSE:NQ) is scheduled to take its turn in the earnings confessional after tonight's close, and will unveil quarterly results from its fiscal first, second, and third quarters. Ahead of the highly anticipated event, put players from both the long and the short sides have been lining up their bets.

At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), for example, the stock's 10-day put/call volume ratio has jumped to 0.48 from 0.02 since the start of the month. What's more, the current ratio ranks in the 72nd percentile of its annual range, meaning puts have been bought to open over calls at an accelerated clip in recent weeks.

As noted, though, put writers have been active on NQ, as well. In fact, over the course of the past 20 sessions, speculators at the ISE, CBOE, and PHLX have sold to open 2.42 puts for each one they've purchased.

On the charts, NQ has had a volatile run this year, with most of the action resolving to the downside. In fact, since their Dec. 31, 2013 close at $14.70, the shares have shed 63% of their value. Today, however, NQ Mobile Inc (ADR) (NYSE:NQ) is up 11.1% to trade at $5.40, as traders pile on ahead of tonight's quarterly earnings results.


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