August 31, 2011 2:27 PM EDT

Harbin Electric (Nasdaq: HRBN) is recently up 2.2% following Orchard Capital reporting a 10.5% passive stake in HRBN. September call option implied volatility is at 86, puts at 165; above its six-month average of 81 according to Track Data. Put are more expensive than calls because the shares are difficult to borrow.