NetEase, Inc. (NTES) Traders Aim for Higher Highs

NetEase, Inc (NTES) hit an all-time high after reporting earnings

by Alex Eppstein

Published on May 14, 2015 at 10:38 AM
Updated on Jun 24, 2020 at 10:16 AM

NetEase, Inc (ADR) (NASDAQ:NTES) is soaring after last night's standout earnings report. At last check, the Internet and gaming stock has rallied 6.8% to trade at $138.85, and recently hit a record high of $139.70. In response, options traders are targeting calls at a blistering rate.

At last check, NTES calls were crossing the tape at 11 times the expected intraday clip. Most active is the May 145 call, which appears to be seeing buy-to-open activity -- suggesting short-term speculators anticipate higher highs by week's end, when the front-month options expire.

Optimism isn't restricted to NetEase, Inc's (NASDAQ:NTES) options pits. All five analysts tracking the shares consider them a "strong buy." At the same time, however, the equity's average 12-month price target of $128.31 stands at a discount to current trading levels, potentially paving the way for price-target hikes.

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