Call Spread on YY on 9/30/2013

YY Inc. (YY) operates an online social platform in the People’s Republic of China. It is the Facebook of China!

It provides YY Client, a personal computer based user software that offers real-time access to user-created online social activities groups. The company also offers Web-based YY that enables users to conduct real-time interactions on the Web without any downloads or installations; and Mobile YY, a smartphone application. In addition, it operates Duowan.com, a game media Website that provides information on online games and other resources for users and online game players.

Shares have formed a bullish "cup & handle" and are in the process of moving higher out of this formation. Note that the firm had a great quarterly report.

52-Week Trading Range:  $10.50 - $51.38

Last Trade:  $46.95

Trade Buy 1 October $45.00 Call at $3.90 Sell 1 October $50.00 Call at $1.70 For a net debit of $2.20 Profit/Loss Analysis Breakeven at $47.20 Maximum profit is $280.00 at strike of $50.00 Maximum loss is ($220.00) at strike of $45.00 Closing Summary Sold 1 October $45.00 Call at $6.10 Bought 1 October $50.00 Call at $2.60

Position closed on 10/2/2013 at price of $3.50 with a 59.09% gain in 1 days.

Updates

10/2/2013 11:17:22 AM

We are taking profits on YY call spread.

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