Shares of Momo (NASDAQ: MOMO) closed Tuesday’s trading 11.5% higher. The maker of instant messaging and social search apps for the Chinese market didn’t generate any news of its own, but traders dug deep in Momo’s short-term stock options.
Momo’s share prices surged when well-known options trader Jon Najarian mentioned his Momo options on CNBC’s Fast Money. Najarian talked about “unusual activity” in call options expiring over the next three weeks. Momo call options with three different strike prices were indeed among the 100 most heavily traded options on Wall Street Tuesday, according to data from Barchart. Somebody out there is betting a lot of money on the idea that Momo’s shares will rise from Monday’s closing price of $13.89 to at least $15.50 per share in the very short term.