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Option Bulls Bombard Sizzling SINA Corp (SINA)

SINA Corp (SINA) is getting a lift after Pine River Capital Management increased its stake in the Chinese media firm

May 25, 2016 at 3:12 PM
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SINA Corp (NASDAQ:SINA) call options are flying off the shelves at triple the expected intraday rate. By the numbers, more than 3,300 call options are on the tape compared to just 199 put options. According to Trade-Alert, the at-the-money June 50 call -- SINA's most active strike today -- is seeing buy-to-open activity. In other words, options traders foresee a decisive move north of the half-century mark through the close on Friday, June 17.

This represents a marked change of pace, relative to what's been happening on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Specifically, during the past 10 sessions, SINA options traders have bought to open 2.52 puts for every call. More impressive yet, this ratio ranks just 1 percentage point from a 52-week peak.

If that's not enough, the stock's front-month gamma-weighted Schaeffer's put/call open interest ratio (SOIR) checks in at 1.07. In other words, options traders targeting near-the-money options in the front-month June series have amassed more puts than calls.

Sparking today's call buying, SINA Corp (NASDAQ:SINA) is 4.7% higher at $50.17, after a recent regulatory filing showed Pine River Capital Management upped its stake in the Chinese media firm. Longer term, the stock has been on the comeback trail since hitting a year-to-date low of $39.58 in February, and has shot over 10% higher week-to-date.

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