One investor is extending a bullish position in Chinese media company Youku Tudou.
optionMONSTER's Heat Seeker system identified the sale of 1,100 September 18 calls for $2.05 and, at the same second, the purchase of 2,700 October 20 calls for $1.30 yesterday. Volume was above previous open interest in the near-term contracts but above it in the October strike.
The trader is closing the September calls, which are now well in the money and expire in 2-1/2 weeks, and is rolling the position to a higher strike one month later. The new long calls are looking for a rally by mid-October but will lose value if shares pull back. (See our Education section)
YOKU rose 1.01 percent to $20 yesterday but is down some 35 percent this year. The Beijing-based video-streaming company fell after a disappointing earnings report last month but then found support at the $19 level.
Total option volume in YOKU yesterday was double its daily average for the last month. Overall calls eclipsed puts by 3 to 1.
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