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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The covered call and unhedged risk

I have written a few things on the Covered Call Strategy over the last two weeks. Please understand that those two previous articles plus this one do not constitute a proper, fully in-depth lesson on the Covered Call Strategy like we have in our classes at Option Monster Education. I have picked out a few topics that I believe were worth noting and today I am going to add the final one.

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