500.com Limited (WBAI) Option Bulls Are Back At It

500.com Ltd (WBAI) options traders have grown more optimistic recently

Digital Content Group
Apr 7, 2015 at 12:53 PM
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Soaring 500.com Ltd (NYSE:WBAI) is seeing a spike in call activity today, after the company confirmed that its approval to provide Internet lottery sales in China hasn't been revoked. Specifically, the contracts are crossing at 11 times the normal intraday pace, with the April 15 call garnering the most attention. It appears traders are buying to open the contract, expecting further gains above $15.

Looking back, call buying was also popular last week in WBAI's options pits, though there was still plenty of bearish activity, as well. Outside of the options pits, though, short sellers are running rampant. Short interest currently represents 23.4% of WBAI's float, after seeing a 57% increase during the most recent reporting period.

These pessimistic traders are likely disappointed in their bets. 500.com Ltd (NYSE:WBAI) has added 31% today to trade at $16.11, and is poised to take out its 80-day moving average for the first time since early September. There's also potential for price-target hikes, should the shares continue gaining. WBAI's consensus 12-month price target rests at $14.

Daily Chart of WBAI since August with 80-Day MA
 

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