SINA Corp (NASDAQ:SINA) – Call options on Chinese online media company, Sina Corp., are active today ahead of the company’s third-quarter earnings this week. Shares in the name are up sharply, trading 7.5% higher on the session at $57.00 as of 12:30 p.m. ET. Some traders positioning for further gains in the price of the underlying snapped up weekly calls on the stock this morning. More than 1,100 of the Nov. 09 ’12 $62.5 strike calls changed hands in the early going against open interest of 363 contracts. Buyers of these call options stand ready to profit at expiration this week should Sina’s shares surge 9.9% to top the average breakeven price of $62.65. Call options are more active than puts on the stock ahead of earnings, with more than two calls in play for each single put traded in the first half of the session.
Rockwell Collins, Inc. (NYSE:COL) – The producer of aviation electronics systems popped up on our ‘hot by options volume’ market scanner this morning due to heavier-than-usual trading traffic in the Jan. 2013 expiry calls. Shares in Rockwell Collins are up 0.80% today at $54.22. The company’s Executive Vice President and COO are scheduled to present at the Goldman Sachs Industrials Conference 2012 next Wednesday morning in Boston, Mass. Trading in the most active contracts on COL this morning suggests some traders are prepared to benefit from share price appreciation during the next few months. The Jan. 2013 $55 strike call traded roughly 1,300 times this morning against open interest of 331 open contracts. The bulk of the volume appears to have been purchased for an average premium of $1.74 apiece, thus preparing buyers to profit in the event that COL’s shares rise at least 4.6% to surpass the breakeven price of $56.74 by expiration next year. The Jan. 2013 expiry options will have one trading session remaining to expiration on the 18th following Rockwell Collins, Inc.’s first-quarter earnings report expected out on January 17th.
Equity Options Analyst
The material presented in this commentary is provided for informational purposes only and is based upon information that is considered to be reliable. However, neither Interactive Brokers LLC nor its affiliates warrant its completeness, accuracy or adequacy and it should not be relied upon as such. Neither IB nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this information. Past performance is not necessarily indicative of future results.
This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities or other financial instruments mentioned in this material are not suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue. The information contained herein does not constitute advice on the tax consequences of making any particular investment decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation to you of any particular securities, financial instruments or strategies. Before investing, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.