Call Spread on NTES on 1/8/2014

NetEase (NTES) engages in online games, Internet portal, e-mail, and wireless value-added services businesses in China.

The company operates through three segments: Online Game Services; Advertising Services; and E-mail, Wireless Value-added Services, and Others. It offers massively multi-player online role-playing games, primarily including Fantasy Westward Journey, Westward Journey Online II, Tianxia III, Ghost, and Heroes of Tang Dynasty; and licensed games.

The company also provides Internet users with Chinese language-based online content channels that provide news, information, and online entertainment; community and communication services, including micro-blogging, blogging, photo album, instant messaging, online personal advertisements, open courses, mobile news applications, e-reading, matchmaking, community forums; and various search functions, such as dictionary and cloud note-taking application.

In addition, it offers online advertising services that include banner advertising, channel sponsorships, direct e-mail, interactive media-rich sites, sponsored special events, games, contests, and other activities; e-mail services to individual and corporate users; and wireless value-added services, as well as e-commerce related services, such as online payment platform and personalized photo-based products.

Shares have formed a bullish "cup & handle" and higher share prices are expected for this stock.

52-Week Trading Range: $42.15 - 80.59

Last Trade: $80.20

Trade Buy 1 February $80.00 Call at $4.00 Sell 1 February $82.50 Call at $3.00 For a net debit of $1.00 Profit/Loss Analysis Breakeven at $81.00 Maximum profit is $150.00 at strike of $83.00 Maximum loss is ($100.00) at strike of $80.00 Closing Summary Sold 1 February $80.00 Call at $0.00 Bought 1 February $82.50 Call at $0.00

Position closed on 2/23/2014 at price of $0.00 with a -100.00% loss in 46 days.

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