Options Trading News

June 19, 2013  Wed 4:14 AM CT

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.
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As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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