Call Buyers Can't Quit NQ Mobile Inc. (NQ)

Long calls continue to be popular on NQ Mobile Inc (ADR) (NYSE:NQ)

Jun 3, 2015 at 1:51 PM
facebook X logo linkedin


NQ Mobile Inc (ADR) (NYSE:NQ) is in rally mode today, with some crediting a round of short covering. Regardless of the reason, the stock is up 11.7% at $5.07, and speculators are flooding the equity's options pits. Overall volume is running at four times the average intraday pace, with calls having the slight edge over puts.

While it appears one block trader may have bought to open a 3,000-contract lot of January 2017 2-strike puts -- NQ's most active option -- shorter-term traders are targeting the stock's June 4.50 call. It looks like new positions are being purchased at this now in-the-money strike, meaning speculators expect the stock to extend today's surge through the close on Friday, June 19 -- when front-month options expire.

More broadly speaking, call buyers have been dominating NQ's option pits in recent months. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 50-day call/put volume ratio of 7.28 ranks in the 87th annual percentile. With 18% of the equity's float sold short, though, some of this call buying -- particularly at out-of-the-money strikes -- could be a result of shorts hedging their bearish bets.

On the charts, NQ has been breaking out recently -- more than likely to the delight of last week's option bulls -- which may have prompted some short sellers to jump ship. Specifically, NQ Mobile Inc (ADR) (NYSE:NQ) is up almost 51% since hitting its most recent low of $3.36, and is on track to close north of its 160-day moving average for just the second time since April 2014.
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI