Weibo Corp. (WB) Unusual Options Activity Leads to a Lucrative Trade

Weibo Corp. (WB) is a social media platform for people to create, distribute and discover Chinese-language content. WB is trading at $17.12 around the middle of its 52 week range of $12.11-$26.08. Year to date the stock has outperformed the market rallying 20.75%. The stock ripped up today by about 8.08% or $1.28.

Early in the session a trader bought 2,500 of the WB June 18.0 Calls for $0.45 when the stock was trading at $16.95. This order was recorded about an hour and a half after the open on OptionHacker, and the stock rose about $0.17 to $17.12 after the trade hit the tape. Over 5,300 contracts have been traded today hinting at bullish sentiment. The WB June 18.0 Calls for $0.45 have traded as high as $1.25 today making this a profitable trade. This stock has been trading above and below the Ichimoku Cloud for a few weeks now. The Ichimoku Cloud continually switches between bullish and bearish clouds indicating varying trends. The cloud remains thin meaning there is not a prevalent trend in the graph of WB.

Trade: A trader bought 2,500 of the WB June 18.0 Calls for $0.45
Risk: $45 per 1 lot
Breakeven: $18.45

If a trader bought a 20 lot of these Calls they would have profited $1,600 at the highs on $900 in risk. This is a great example of profitable UOA.

Andrew Keene

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