CTRP

CTRP - Option traders are running rings – make that Olympic rings – around puts in a leading provider of Chinese travel and hotel accommodations ahead of the Beijing Games. While shares in Chinese online travel booker CTrip.com rose .90% to $45.99, we recorded the single heaviest day of put trading on record for the company – sending overall option volume to nearly 10 times the normal level. Heaviest in demand were August 40 puts, a full $6 out of the money, but trading heavily to buyers at 8 times the open interest. August 45 puts were also heavily in demand. By way of perspective on a stock that could medal in volatility (if there were such a thing), consider that on May 5, exactly three months ago today, shares in CTrip.com topped $70 bucks. The stock has lost about $25 since that time, and while that’s reflected in the near 50% volatility reading in the stock, implied volatility the options ticks in nearly 20 percentage points higher at 68.5% - suggesting much more rockiness ahead. CTrip.com is due to report earnings on August 13.