OptionsHouse

Options Trading News

September 10, 2013  Tue 2:14 AM CT

ATVI: SEE CHART GET CHAIN FIND STRATEGIES
A large bullish trader is playing for more time in Activision Blizzard.

optionMONSTER's Heat Seeker system shows that a trader sold 10,000 September 17 calls for $0.32 in volume below previous open interest of 69,602. At the same time, he or she bought 10,000 October 17 calls for $0.65 in volume far above open interest of just 383 contracts, indicating a new position at that strike.

The trader is apparently closing the September contracts, which expire at the end of next week, and rolling the long-call position forward. This adjustment, which cost at net $0.33, gives the investor another month for the trade to stock to rally. (See our Education section)

ATVI gained 0.41 percent to $17.04 yesterday. The game developer was at a high of $18.43 at the end of July after gapping up from the $15 level a week earlier.  

Total option volume in ATVI was 20,966 contracts in the session, compared to a daily average of 3,518 for the last month. 
Share this article with your friends


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

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

Real vs. Synthetic

We now know that there are two ways of creating a call position, a put position, and a stock position. We can simply use the actual real security or we can recreate it synthetically. We can create these positions in both long and short forms and this ability sets up an interesting scenario--an arbitrage!

View more education articles »