Options Trading News

October 26, 2012  Fri 9:56 AM CT

Shares of Activision Blizzard hit a new 52-week low today, and one trader believes that more downside is possible for the struggling videogame maker.

More than 23,000 ATVI options trade, compared to a daily average of 3,200. Only 2,000 of the day's action is in the calls, and a single print of 14,000 January 10 puts make up most of the action.

The puts traded for $0.25, the listed ask price at the time, indicating that they were bought. The previous open interest in the strike was 2,633 contracts, so this is a new position.

Our systems also detected some big ATVI stock prints changing hands, as two blocks of 100,000 shares traded for $11 and $11.015 about 20 minutes before the puts, so the options could be related to the stock. The puts could also be hedging against an existing position in ATVI shares. (See our Education section)

ATVI is down 1.54 percent to $10.89. Shares were above $12 a month ago.
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As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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