Option Alert: King Kongzhong (KONG)

Posted in General, Options 
December 30th, 2009

Kongzhong Corp. (NASDAQ: KONG) is having a strong trading day in the stock, but its implied volatility via options is rising 21% to 58% on the day with shares 13% higher on a positive mention at Navellier.  There looks to be more to the move.  Two block buyers at the offer on wide spreads of 3,000 contracts each in the OTM February $12.50 calls came in at 10:24 and 10:31am.  Call volume is already 35X daily volume.

At 10:40 AM EST shares are up over 13% at $11.79 on 488,000 shares.  Average share volume is 339,000 shares and the 52-week range is $3.14 to $16.16.

JOE KUNKLE, OptionsHawk.com

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