Protection Purchased on Wonder Auto (WATG)

Shares of Wonder Auto Technology, Inc. WATG are higher on the session by 3.19%, currently trading at $8.74. The stock has been moving largely higher for the past five months, following a sharp drop in May. The stock is now running above the 50-day moving average. Options traders are buying protection on shares today, though. A short while ago the January 2011 $7.50 put was purchased 1,000 times, on the offer, for $0.85. Open interest on the strike is only 172 contracts. Put volume is now running at 18.89x the daily average with 88% of all calls traded being purchases on the offer. Wonder Auto Technology, Inc. is a manufacturer of automotive electric parts, suspension products and engine components in the People's Republic of China. The products include alternators, starters, engine valves and tappets, and rods and shafts for use in shock absorber systems. The products are used in a range of passenger and commercial automobiles. For more great research like this, as well as how to play it through options…please visit Benzinga's Options & Volatility Edge and Benzinga's Cash Generator.