Options Long and Short for Today
On the long side today there is Sohu
(SOHU). This stock shot up 14.51% today and there was a lot of Call option
action in the May and June months. Most Chinese Web stocks rallied today as
Sohu provided a strong first quarter report on the back of online game sales.
For the second quarter, Sohu projected higher revenue than analyst were
expecting. In May, the 65 strike price Calls and the 70 strike price Calls saw
above normal buying action. In June, the 60 strike price Calls had volume of 2,847
options, well above what other strike prices had seen.
On the short side there was Radio
Shack (RSH). This stock moved down 13.54% as same store sales came in weak,
dropping 4% in the first quarter. The company blamed sales of Sprint postpaid
wireless products. Other product areas did better. Margins looked weak and
profit was lower than expected. May 15 and 17.50 strike Puts and June 15 strike
Puts saw most the action today.