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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.
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Education & Strategy

The Strike-Based Greeks

The other Greeks (Gamma, Vega, and Theta) are calculated by using month and strike data, and not by individual option. These are called strike-based Greeks. Gamma, Theta, and Vega are all strike-based Greeks

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