OptionsHouse

Options Trading News

August 20, 2013  Tue 4:47 AM CT

ATVI: SEE CHART GET CHAIN FIND STRATEGIES
Call buyers stormed into Activision Blizzard just before the closing bell yesterday.

Nearly 4,000 November 19 calls were purchased for $0.33 in the last 8 minutes of the session, according to optionMONSTER's Heat Seeker real-time tracking system. Open interest in the strike was just 745 contracts before the trades appeared, clearly showing that this is fresh buying.

These long calls lock in the price where the stock can be bought through mid-November no matter how far it might rise. The options could be sold earlier at a profit if premiums rise with a rally before then, but they could expire worthless if shares remain below $19. (See our Education section)

ATVI fell 2.95 percent yesterday to $16.79 but is up more than 11 percent in the last month. The video-game developer soared to a five-year high of $18.43 last month after reporting strong second-quarter results and announcing that it would buy most of Vivendi's stake in the company for more than $8 billion.

Overall ATVI calls outnumbered puts by 8 to 1 yesterday, reflecting the bullish sentiment.
Share this article with your friends


Related Stories

ATVI

Bulls returning to Activision Blizzard

July 7, 2015

The video-game maker has benefited from a transition to Internet-based sales and new consoles, and traders are buying calls for the second day in a row.

Invest Like a Monster - San Antonio: October 9-10

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Options Academy: At the Break

So far, my articles have taken you through a logical progression of option theory and fundamental concepts of options. As of yet, I have not mentioned a single strategy and for a good reason! The actual application of a strategy should come AFTER you learn about the option product itself.

View more education articles »