(for details pls visit www.OptionPundit.net)
E-House (EJ) is breaking out after 3wks of consolidation. The move is supported by strong volumes, as high as 3rd highest since its listing in Aug.
For beginners, E-House (China) Holdings Limited (E-House), through its subsidiaries, is engaged in providing real estate agency and brokerage services in the primary and secondary markets and real estate consulting and information services in the People’s Republic of China. It operates through a network of over 1,800 real estate sales professionals in 20 cities throughout China. E-House’s service offerings are enhanced by its real estate information database and analysis system, which the Company refers to as China Real Estate Information Circle system (CRIC system), which is an information system that provides up-to-date and in-depth information covering residential and commercial real estate properties in all regions in China. It provides three principal types of services: primary real estate agency services, secondary real estate brokerage services, and real estate consulting and information services.
I have been playing this and been in-n-out many times. Now I am looking for roughly $40-$41 as the new “momentum target”. Watch-out though, as with any speculative, or directional play, hand with care! You may choose to play this via straight call, bull call debit spred, bull put credit spread, OOM butterfly/calendar, or diagonal spread. There are several choices.
This is quite a classical theoretical move. When monitoring this trade, I would strongly urge to keep close eye on Fed’s meeting next week and also china market’s movement as those two factors can affect it. Another thing to note is – If US market falls, these stock falls in anticipation that China markets will fall next day, which may or may not happen. Read my TimeZone trading opportunity for more perspective.
Profitable trading, OPикони