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Interesting Call Options Activity At Sky-Mobi (NasdaqGM: MOBI)

|Includes:Sky-mobi Limited (MOBI)

Sky-Mobi Limited operates a mobile application store in China. The company works with handset companies to pre-install its Maopao mobile application store on handsets and with content developers to provide users with applications and content titles.

Ownership Structure per FY2012 (Link):

Call Options Accumulation at SKY-MOBI (green = calls / red = puts)

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Trading Activity in the JAN14 $2.5 Calls

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Open Interest on the 20th of May 2,013: 0

Open Interest on the 6th of June 2013: 4,161

Over the past two weeks 186 trades (4,385 Contracts) in this contract Occurred; 84.9462% of the trades (3,871 Contracts) was at ASK or Above.

It follows that at least 3,759 Contracts of the 4,161 Open Interest represent a Long Position in the Option!

---> This Corresponds to about a right to buy 375,900 ADS at expiration for 2.5$ each. ---> About 3.85% of the Theoretical Free Float (5.00% if Institutional Ownership is excluded from the Theoretical Free Float)

---> Someone invested 662,928 USD (long) in Jan14 $2.5 Calls ... ... of a Company with a Market Cap of less the 105,000,000 USD!

Trading Activity in the JAN14 $2.5 Calls

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Open Interest on the 10th of May 2013: 0

Open Interest on the 6th of June 2013: 6,153

My Data Provider had some Problems with the Trades occurred in this contract on the 14th May, 2013. The following Statistics are therefore not 100% accurate. But I believe them to represent a fair picture of what happened over the past 4 weeks.

During the past 4 weeks 260+ trades (6,700+ Contracts) in this contract Occurred; 80% of the trades (5,360 Contracts) was at ASK or Above.

It follows that least 5,086 Contracts of the 6,153 Open Interest represent a Long Position in the Option!

---> This Corresponds to a right to buy 508,600 ADS at expiration for 2.5$ each. ---> About 5.10% of the Theoretical Free Float (5.80% if Institutional Ownership is excluded from the Theoretical Free Float)

---> Someone invested about 559,460 USD long in Oct13 $2.5 Calls ... ... of a Company with a Market Cap of less the 105,000,000 USD!

Over the Past 4 weeks, more than $1,222,388 has been invested in Options with a $2.5 Strike (at different expiration dates). If exercised, these Options will allow the buyers to gain Control of about 884,500 ADS of Sky-Moby, representing approximately 8.90% of the Theoretical Free Float (10.80% if Institutional Ownership is excluded from the Free Float). It equals about 2.75% of the Theoretical Total Outstanding Shares.

Pretty big Speculation (even on WS) on a Company with a Market Capitalization slightly above 100,000,000 USD!!

Sky-Mobi Key Statistics

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Disclosure: I am long MOBI.

Stocks: MOBI