Bulls Target E-House China (EJ)

Shares of E-House China Holdings LTD (NYSE: EJ) are higher on the session by 2.29%, currently trading $14.31. The stock has been breaking lower for the past few weeks and is making lower lows and lower highs. This is a very bearish sign.

Despite that, I am seeing call purchases in the name on the July $17.50 strike where 4,200 contracts have been purchased. Open interest is only 28 contracts, which suggests new positioning.

I, for one, would not be trading along side these options though. I would be waiting for a bounce to short into.

E-House (China) Holdings Limited is a real estate services company in People's Republic of China.