Qihoo 360 Technology Co Ltd. (QIHU) Unusual Options Activity Leads to Highly Profitable Trade

Qihoo 360 Technology Co Ltd. (QIHU) is an internet based company engaged in internet services in the People’s Republic of China. QIHU is trading at $58.92 around the lower end of its 52 week range of $44.56-$104.81. Year to date the stock has performed in line with the market rallying 3.55%. The stock ripped to the upside today by about 7.20% or $3.96.

Early in the session a trader bought 2,500 of the QIHU June 5th Weekly 55.5 Calls for $1.09 when the stock was trading at $56.30. This investor was most likely establishing a short-term position considering the June 5th weekly Calls were bought. This order was recorded about half an hour after the open on OptionHacker, and the stock rose about $4.06 to $60.36 after the trade hit the tape. Over 3,160 contracts have been traded today hinting at bullish sentiment. The QIHU June 5th Weekly 55.5 Calls for $1.09 have traded as high as $4.30 today making this a highly profitable trade. This stock has been trading above the Ichimoku Cloud for a few days now.

Trade: A trader bought 2,500 of the QIHU June 5th weekly 55.5 Calls for $1.09
Risk: $109 per 1 lot
Breakeven: $56.59

If a trader bought a 20 lot of these Calls they would have profited $6,420 at the highs on $2,180 in risk. This is a great example of a hugely profitable UOA trade.

Andrew Keene

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