Trader bets TiVo downside is limited
Mike Yamamoto | firstname.lastname@example.org
optionMONSTER's tracking systems detected the sale of 2,500 July 11 puts in less than 30 seconds yesterday, led by a print of 2,084 that went for $0.30. The volume was well above the strike's open interest of 1,691 contracts before the session began, showing that this is a new position.
The put seller is looking for TIVO to stay above $11 through expiration in mid-July. If the stock is below that strike price, the trader will be required to buy shares at that level if assigned. (See our Education section)
TIVO fell 0.62 percent to $11.19 yesterday, closing below its 200-day moving average for the eighth straight session. The stock gapped down from above $13 level on June 7 after settling a lawsuit over the use of its technology with Motorola, Cisco, and Time Warner Cable for $490 million--far less than analysts had anticipated.