Options Trading News

June 4, 2013  Tue 3:16 AM CT

Activision Blizzard bounced yesterday, and one trader is looking for the video-game maker to hold current levels.  

More than 10,500 July 14 traded in the session, with 4,205 going for $0.44 and another 6,305 sold for $0.43 at the same second, according to optionMONSTER systems. Open interest in the strike was just 489 contracts before the trades appeared, clearly showing that these are new positions.

The put selling is a bet that ATVI will hold the $14 level through mid-July. Shares have not closed below that price since mid-February after running higher on strong quarterly numbers that month. (See our Education section)

ATVI gained 1.39 percent to close at $14.63. Shares were up as high as $16.11 last week.
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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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