Weird Call Option Trades: JinkoSolar Holding (JKS), Bebe Stores (BEBE)

The smart money seems to be taking a breather on big call buys after a busy couple weeks.  There has been far fewer unusual call buys, especially compared to Tuesday’s action.  However here are a couple more interesting trades in JinkoSolar Holding (JKS), and in Bebe Stores, Inc (BEBE).

Action in solar companies is always interesting to us, and a new trade in JinkoSolar Holding (JKS) definitely piqued are interest.  A trader bought 2,632 September $29 calls just around 1pm today, mostly at the ask of $2.50.  That makes for a good sized bet, with a transaction value of $658,000.  It’s also interesting to note a big surge in YINN calls at the same time.  Call volume has surged since to over 3200 contracts traded as the copycat traders jump in on this.

Right now those same calls are bidding $2.55, and ask is now $2.65 cents with the last trade at $2.65, so you’ll have to only pay up a bit more than the original trader in JinkoSolar Holding (JKS) calls if you want in on this action.

JinkoSolar-JKS-logoJinkoSolar Holding (JKS) is currently trading at $30.79 up just $1.22 today.  JKS has a 52 week high of $37.98, and a low of $16.01 on the year.  The company doesn’t announce earnings until late November, so this is clearly a play on either an impending upgrade from a major analyst or some other unexpected corporate announcement.

One of the smaller, yet more unusual call buys was in the lightly traded company Bebe Stores, Inc (BEBE).   A trader bought 1,000 +  September $4.00 calls in BEBE around midday today.   That trader paid just $0.05 at the ask.  Now, we know this is not a huge trade at a value of $5,000, but it is weird none the less. Frankly, we don’t really know what to make of this trade.  Sure it’s cheap, at 5 cents, but it’s got a long way to go, and only a couple weeks left to do it.

Bebe Stores, Inc (BEBE) is currently trading at $3.02 down 13 cents on the day so far. The 52 week high for BEBE is $7.03, while the low is $2.61 so I guess this trader thinks it’s ready to bounce finally.  Bebe Stores, Inc (BEBE) isn’t scheduled to report earnings until November 6th so this has nothing to do with earnings leaks.  This is one we’ll sit out for now, but we get the feeling this could be a 5 bagger out of the blue.

That’s it for now, happy options trading.