OptionsHouse

Options Trading News

May 8, 2014  Thu 11:20 AM CT

ATVI: SEE CHART GET CHAIN FIND STRATEGIES
Call selling sees limited upside in Activision Blizzard.

A trader sold 4,990 August 24 calls for the bid price of $0.29 today, according to optionMONSTER systems. This is a new opening position, as its volume was more than 10 times the previous interest in the strike.

The calls do not appear tied to any trading in ATVI stock identified by our scanners today, so they could have been sold naked with an initial bearish bias. Alternatively, they could have been traded against an existing long position to create a covered-call strategy, which would be bullish up to the $24 strike price but not beyond. (See our Education section)

ATVI is up 0.14 percent to $21.04 in midday trading, a day after gapping higher from the $19 level on strong quarterly results. The video-game developer is now trading near its highest levels since September 2008.
Share this article with your friends


Related Stories

ATVI

Traders show confidence in Activision

June 27, 2016

Traders are selling puts in the game developer, which reported bullish results on May 5 and is up 15 percent in the last three months.

ATVI

Activision Blizzard draws upside strategy

June 8, 2016

A large investor is adjusting a bullish position in the game developer, which has rallied 22 percent in the last three months.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

The Movement of Delta

In our last column, we spoke about delta. You might remember that we discussed what delta was and what factors affected or changed delta. As you recall, we stated that three factors will have an effect on delta. They were movements of time, volatility, and underlying price. Today, we want to take a further look into the change of delta, this time focusing on change due to the movement in the underlying price. 

View more education articles »