Focus Media Receives an Odd Trade
Chinese multi-platform digital media company, Focus Media (NASDAQ: FMCN) has just received an odd option trade in the April 2010 contract. 25,500 contracts of the $5 strike were bought on the offer for $0.15 with little to no open interest. The trade is odd because the stock currently trades at $13.36 and that the executive chairman just purchased 75,000,000 shares from the company for $9.495. This was a prearranged transfer and not an open market purchase.
Focus Media has been trending higher for the past few months and the chart looks decently bullish. Not to mention the 48.88% short interest with 4.14 days to cover. I have a hard time not being bullish, even after the large run the ADR has had, but this trade leaves me scratching my head.
