It appears internet stocks are in play today, by the hedge funds, and likely, the insiders. Two of the most interesting call buys this morning were seen in E Commerce China Dangdang Inc (DANG), and in Yandex NV (YNDX). Yahoo Inc. (YHOO) is also seeing a lot of big call buys but that’s not unusual at all..
E Commerce China Dangdang Inc (DANG) is always an unusual and interesting call buyer target, and we like these Chinese plays when the insiders start buying the calls. This morning, trader bought 1120 DANG October $15.00 calls early in trading. That makes this little bet a transaction value of just $55,000 or so, but it is very unusual none the less. As of 10:46 there has now been a total of 2400 contracts traded in E Commerce China Dangdang Inc (DANG) October 15’s, so clearly they are gobbling this up in a hurry now.
E Commerce China Dangdang Inc (DANG) is currently trading at $13.95 up 31 cents and well off it’s day low hit around the time of the big call buy, at $13.61. DANG has a 52 week high of $19.05, and a low of $7.69 for the year. That’s a pretty big range. It’s traded almost 7000,000 shares so far today versus it’s daily average volume traded of 2.8 million shares, so volume is not earth shattering. That lack of volume make me like this sizeable call buying in DANG.
E Commerce China Dangdang Inc (DANG) doesn’t have a huge following by analysts, but has a BUY rating on average and a price target of $14.37. That tells me this call buying could very well mean an analyst upgrade/price target raise is coming very soon in DANG. I’ll go out on a limb and guess Citigroup will up its price target soon.
Meanwhile another internet company, this time Yandex NV (YNDX), the Russian search engine companyis seeing huge call buys this morning. First, a trader bought 3856 YNDX October $34 calls. They paid 65 cents at the ask, for those calls that expire next month. Then, a trader bought another 4149 of the October $34 calls, again at 69 cents. That makes for a transaction value of over $520,000.
But the call buyers weren’t done with that. A total of 11,350 contracts have now traded in YNDX October $34 calls, plus another 2069 + of the YNDX September $32 calls have were bought by a single trader. Clearly something big is up on this one and we love those foreign call buys!
Yandex NV (YNDX) is currently trading at $31.38 down 22 cents on the day, though well off its earlier low of $31.14 since the call buying. YNDX has a 52 week high of $45.42, and a low of $21.70 for the year. It’s only traded 800,000 shares today so far, and average daily volume is 2.87 million shares on average.
Yandex NV (YNDX) announces quarterly earnings October 22, but we suspect this call buying has nothing to do with earnings. Clearly someone knows an upgrade is coming, or some other corporate event? This one should get fun fast, but be ready to exit just as quick.