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Call Spread on SINA on 10/7/2013

Bullish Cup & Handle on SINASINA 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 privately; send messages in the form of text, voice, picture, and emotions, as well as provides social networking services; and an open application programming interface platform that allows its users to access internally and third-party developed applications.

In addition, it offers mobile value-added services, which allow users to receive news and information; to download ring tones, mobile games, and pictures; and to participate in dating and friendship communities. 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 are in the process of moving higher out of a bullish "cup & handle."

52-Week Trading Range: $41.14 - $90.75

Last Trade:  $88.95

 

Trade

  • Buy 1 November $87.50 Call at $7.70
  • Sell 1 November $92.50 Call at $5.50
  • For a net debit of $2.20

Profit/Loss Analysis

  • Breakeven at $89.70
  • Maximum profit is $280.00 at strike of $93.00
  • Maximum loss is ($220.00) at strike of $87.00

Closing Summary

  • Sold 1 November $87.50 Call at $8.70
  • Bought 1 November $92.50 Call at $5.80

Position closed on 10/18/2013 at price of $2.90 with a 31.82% gain in 10 days.

Updates

10/18/2013 9:48:50 AM

We are taking profits on SINA call spread.

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