Another China Stock Call Traders Are Targeting

Calls are outpacing puts at an astounding rate today

Deputy Editor
Jul 6, 2020 at 3:14 PM
facebook X logo linkedin


The shares of China-based streaming service Tencent Music Entertainment Group (NYSE:TME) are up 9.6% at $15.50 at last check, one of the bigger movers on the New York Stock Exchange (NYSE) today. TME, like it's list-peers, can attribute its rise to the recovery that investors hope to see in the world's second largest economy. As a result Tencent stock call options are a hot commodity at the moment. 

More specifically, TME calls are changing hands at seven times the intraday average, volume good for the 99th percentile of its annual range, and nearly 40 times the amount of puts that are trading. The most popular contract by far is the  July 14 call, followed by the 16 call from the same series, with new positions being opened at the latter.

This bullish behavior is nothing new, though. TME sports a 50-day call/put volume ratio of 27.18 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than all but 1% of readings from the past 12 months. Echoing this, TME's Schaeffer's put/call open interest ratio (SOIR) of 0.36 sits in just the 14th percentile of its annual range, suggesting short-term option players have rarely been more call-heavy during the past 12 months.

The good news for options traders is that the security's Schaeffer's Volatility Index (SVI) of 39% stands higher than 10% of all other readings from the past year.This implies that near-term option traders are pricing in relatively low volatility expectations; a boon for premium buyers.

Today's breakout has TME toppling the $15.60 area and reclaiming their 12-month breakeven level. The shares have now almost doubled off their March 23 lows of $9.22, and have tacked on 33% in 2020.

TME Chart July 6

 

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