Weibo Stock's Latest Sell-Off Rewards Options Bears

Options bears have targeted WB's June 55 put

May 23, 2019 at 10:01 AM
    facebook X logo linkedin


    Weibo Corp (NASDAQ:WB) shares are trading down 11.8% at $45.12, fresh off a two-year low of $44.50. Media reports suggesting the U.S.-Sino trade dispute will turn into a "tech cold war" are weighing on Chinese stocks, and overshadowing WB's stronger-than-expected adjusted first-quarter profit. The Beijing-based social media site said revenue for the three-month period arrived at $399.2 million -- in line with estimates.

    U.S.-listed WB shares had already been struggling, shedding half their value year-over-year through last night's close at $51.16. Today's bear gap has the stock slicing through short-term support at the half-century mark, a level that hasn't been breached on a daily closing basis since April 2017.

    Options traders have been bracing for even more downside from WB stock. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day put/call volume ratio of 1.27 ranks in the 91st annual percentile, meaning puts have been bought to open over calls at a quicker-than-usual clip.

    Drilling down, the June 55 put has seen the biggest increase in open interest over this two-week time frame, with nearly 6,000 contracts added. Trade-Alert indicates a number of these puts were bought to open this past Monday, May 20, for an average price of $6.20 apiece. The bid price on these in the-the-money options was last seen at $12.00, meaning put buyers are already staring at a handsome profit.

     

    Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

    This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

    On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

    Start targeting gains like the ones our subscribers have seen recently, including:

    213.3% GAIN on AutoNation calls
    100.0% GAIN on Monster Beverage calls
    100.4% GAIN on Walgreens Boots Alliance puts
    100.4% GAIN on ON Semiconductor calls
    257.7% GAIN on Dell calls

    101.0% GAIN on Apollo Global Management calls
    103.6% GAIN on JP Morgan  Chase calls
    105.3% GAIN on DraftKings calls
    101.3% GAIN on Airbnb calls
    203.0% GAIN on Shopify calls
    102.0% GAIN on Cboe Global Markets calls
    100.9% GAIN on Boeing calls
    102.1% GAIN on Microsoft puts
    102.3% GAIN on First Solar calls
    101.5% GAIN on PulteGroup calls
    101.0% GAIN on Apple calls
    209.4% GAIN on NXP Semiconductors calls
    100.8% GAIN on Uber Technologies calls
    100.4% GAIN on Academy Sports and Outdoors puts
    102.2% GAIN on Trade Desk calls
    100.8% GAIN on DoorDash calls
    100.0% GAIN on Camping World Holdings puts
    100.0% GAIN on Cboe Global Markets calls
    100.2% GAIN on C3.ai calls
    238.5% GAIN on Oracle calls

     
     
     


     
     

    Rainmaker Ads CGI