Options Trading News

September 16, 2016  Fri 8:22 AM CT


Traders are looking for more gains in Activision Blizzard by the end of next week.

optionMONSTER's tracking program detected the purchase of more than 8,000 September 44.50 calls for $0.09 to $0.34 yesterday in new positions well above the strike's open interest of 1,615 contracts. Another 3,200 Weekly 44.50 calls expiring on Sept. 23 were purchased for $0.55 to $0.75 against open interest of 199 contracts.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

ATVI rose 2.13 percent to $44.59 yesterday and is up 14 percent in the last three months. The game developer reported  bullish results on Aug. 4 and is expected to announce its next earnings numbers after the close on Nov. 2.

Overall option volume in the name was twice its daily average yesterday. Calls outnumbered puts by a bullish 5-to-1 ratio.

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