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SINA Stock Set For Post-Earnings Surge

SINA's near-term call open interest extremely outweighs put

Managing Editor
Aug 19, 2019 at 9:13 AM
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Chinese tech name SINA Corp (NASDAQ:SINA) is up 6.8% at $40.20 in electronic trading, after the company announced a second-quarter earnings and revenue beat. This marks the eighth straight earnings beat for the company, according to Thomson Reuters. Some of the quarter's success boost came from Weibo's (WB) live-streaming business, combined with lower operating costs for the period.

Looking at the options pits, call trading has been popular. This is per the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.44, which ranks in the 4th percentile of its annual range. In other words, near-term call open interest extremely outweighs put open interest, something that is highly unusual for SINA.

On the charts SINA has struggled long term. With recent pressure emerging from the 40-day moving average, the shares touched a three-year low of $32.99 just this past Tuesday, Aug. 13. In fact, the stock is down 45% in the past year. That may be why analysts have been skeptical, with half those in coverage handing out tepid "hold" ratings. We'll see if today's strong earnings report can spark bull notes. 

 

 

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