TME Reverses Early Gains on Share Buyback Plan

Options are running at nine times what's typically seen

Deputy Editor
Mar 29, 2021 at 10:24 AM
facebook twitter linkedin


The shares of China-based Tencent Music Entertainment Group (NYSE:TME) are flat despite earlier staging a brief rebound, last seen at $19.99, after the company announced a $1 billion share buyback plan. After breaking out past pressure at the $28 level and hitting a March 23 record high of $32.24, TME had been plummeting lower. Down 34.8% in the past week, the equity is overdue for a breather on the charts. 

Tencent Music Entertainment stock could see further tailwinds from a short squeeze, too. The 74.77 million shares sold short currently make up an impressive 24.4% of the stock's available float, or over five days' worth of pent-up buying power. 

Lastly, today's news has options traders rushing in, with overall options volume running at nine times what's typically seen at this point already. So far, 22,000 calls and 12,000 puts have crossed the tape. The most popular is the May 16 put, where new positions are being opened. 

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners