Market News

November 29, 2016  Tue 6:45 AM CT

One trader is giving Take-Two Interactive Software another year to advance.

OptionMonster's monitoring system detected the sale of 1,650 January 39 calls for $9.80 and the purchase of 1,000 January 2018 50 calls for $7 yesterday. Volume was below open interest in the nearer-term contracts, indicating that a bullish position was rolled forward by a year and reduced in size.

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)

TTWO fell 0.68 percent to $48.48 yesterday but is up 16 percent in the last three months. The game developer reported bullish results on Nov. 2 and is expected to release its next earnings numbers after the close on Feb. 2.

Overall option volume was 3 times greater than average in the name yesterday. Calls outnumbered puts by a bullish 27-to-1 ratio.

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