Call Spread on SINA on 9/6/2013

SINA Corporation (SINA) operates as an online media company in the People’s Republic of China.

It operates SINA.com, an online brand advertising portal that provides region-focused format and content, including news, sporting events news, automobile-related news, business news coverage and personal finance columns, entertainment news and events, luxury, technology, digital products reviews, luxury goods and services, collectibles, and video products, as well as an interactive platform for fashion-conscious users to share comments and ideas on health, cosmetics, and beauty topics.

The company also operates Weibo.com that allows users to send feeds in the form of text, photo, video, and music to their opted-in followers, interest groups, or selected individuals. This is Twitter of China!

Further, the company operates game portal that provides users with downloads and gateway access to popular online games, information and updates on popular online and PC games, and value-added application tools.  

Shares have formed a bullish "Cup & Handle" and are ready to move higher. We are using a "call spread" option strategy to trade.

52-Week Trading Range: $41.14 - $86.00

Last Trade: $83.50

Here is the trade: 

Buy One October SINA $82.50 Call Option for $5.00 or less

Sell One October SINA $87.50 Call Option for $3.10 or more

Trade Buy 1 October $82.50 Call at $5.00 Sell 1 October $87.50 Call at $3.10 For a net debit of $1.90 Profit/Loss Analysis Breakeven at $84.40 Maximum profit is $310.00 at strike of $88.00 Maximum loss is ($190.00) at strike of $82.00 Closing Summary Sold 1 October $82.50 Call at $7.30 Bought 1 October $87.50 Call at $4.30

Position closed on 9/12/2013 at price of $3.00 with a 57.89% gain in 6 days.

Updates

9/12/2013 9:38:18 AM

We are closing SINA option trade with success.

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