OptionsHouse

Options Trading News

June 19, 2013  Wed 4:14 AM CT

TIVO: SEE CHART GET CHAIN FIND STRATEGIES
Shares of TiVo got hammered earlier this month, but one trader is looking for the digital video-recording company to hold current levels.

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.
Share this article with your friends


OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

Sweet Spot Exceptions

As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

View more education articles »