Sina Call Buying Dwarfs Average Volume

By Pete Najarian, co-founder of OptionMonster

Options activity is heating up in Sina(SINA Quote) ahead of the online media company's earnings report Tuesday.

Trading was concentrated on the Sina September 40 contracts, where 5,747 calls traded Friday from $1.35 to $1.70, according to OptionMonster's tracking systems. That dwarfed the 20-day average volume of just 48 calls and was more than triple the open interest at that strike.

Traders also were also buying the September 45 calls, where 1,841 changed hands for 55 cents to 75 cents, compared with open interest of 550 and an average volume of just six contracts. Both contracts would require a significant pop by their September expiration to turn a profit. ...