Activision Blizzard faces put buying
David Russell | [email protected]
optionMONSTER's Depth Charge monitoring system detected the purchase of 5,000 December 15 puts for $0.07 to $0.10. Volume was more than 40 times the previous open interest at the strike, indicating that new positions were initiated.
These puts lock in the price where a stock can be sold, letting investors hedge against a pullback or speculate to the downside. But these contracts will expire worthless if shares remain above $15 through mid-December. (See our Education section)
ATVI is up 1.07 percent to $17.07 in morning trading. The game company gapped higher in late July after buying back shares from Vivendi at a discount but has been consolidating in a range ever since. There was also heavy short-term call buying last Thursday, Nov. 14, as investors looked for a run higher through next week.
More than 8,800 contracts have traded in the stock so far today, more than twice the daily average. Puts accounted for a bearish 90 percent of the total.