Q2 STOCKS TO BUY

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 X logo 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. 

 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here