Demand for SouFun Holdings Ltd (SFUN) Call Options Blows Up

SouFun Holdings Ltd (SFUN) call options are trading at 56 times the expected intraday rate

Jun 14, 2016 at 11:47 AM
facebook X logo linkedin


SouFun Holdings Ltd's (NYSE:SFUN) options pits are going wild today. At last check, 24,000 call options were on the tape -- 56 times the expected intraday rate -- while not a single put had been exchanged. In fact, call volume is running in the 100th percentile of its annual range. From the looks of it, traders are gambling on gains for the China-based real estate stock.

Almost all of the options volume is transpiring at the August 5 call, and according to Trade-Alert, it's mostly of the buy-to-open kind. Data from the International Securities Exchange (ISE) also confirms newly purchased positions. The biggest trade consisted of 6,666 contracts, and if it was bought to open, the speculator shelled out a total of roughly $366,000 ($0.55 premium paid * number of contracts * 100 shares per contract). The goal is for SFUN to rally north of $5 by August expiration, while the most call buyers have at risk is the initial premium paid.

This is business as usual for the stock. During the last 10 weeks at the ISE, Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open nearly 9,000 SFUN calls compared to just 31 puts.

Technically speaking, however, SouFun Holdings Ltd (NYSE:SFUN) has been a disaster. The stock may be up 0.4% today at $4.96, but on a year-over-year basis, it's sunk almost 47%.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.
 

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