Ctrip.com Bears Active Amid China Sell-Off, Server Hack

A double dose of bad news has Ctrip.com International, Ltd. (ADR) (CTRP) option bears champing at the bit

May 28, 2015 at 11:33 AM
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The shares of Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) are down 1.5% at $80.28, amid reports the online travel concern's servers were hacked by unidentified sources. Adding salt to the stock's wounds, China-based stocks in general are feeling the heat after a major sell-off in Shanghai. What's more, the options crowd is rolling the dice on even more short-term downside for CTRP. 

Puts have crossed the tape at nearly twice the average midday rate, and have more than doubled CTRP calls thus far. Attracting the most attention has been the weekly 6/5 75-strike put, where apparent buy-to-open action has been spotted. The puts will move into the money if CTRP breaches $75 -- and closes last week's bull gap -- by the close on Friday, June 5, when the options expire. 

Even with today's dip, Ctrip.com International, Ltd. (NASDAQ:CTRP) remains more than 75% higher in 2015, and touched a record high of $87.62 on Tuesday. As such, the equity's 14-day Relative Strength Index (RSI) has surged to 78 -- in overbought territory, suggesting a short-term breather may have been in the cards.

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