Options Traders React as Activision Blizzard, Inc. (ATVI) Sets eSports Viewership Record

Activision Blizzard, Inc. (NASDAQ:ATVI) is trying to keep its hot streak alive after announcing record viewership for its competitive gaming event

Apr 12, 2016 at 10:33 AM
facebook X logo linkedin


In mid-February, video game producer Activision Blizzard, Inc. (NASDAQ:ATVI) delivered disappointing earnings, and analysts punished the stock, sending the shares spiraling. Since its post-earnings low of $26.49, though, ATVI has rebounded over 25%, thanks to support from its rising 20-day moving average. However, the stock is currently down 0.7% to trade at $33.19, despite the company announcing record eSports viewership for its Major League Gaming’s Counter-Strike: Global Offensive Major Championship, with 1.6 million concurrent viewers. Based on what we're seeing in the options arena, traders are responding.

Daily Chart of ATVI

Taking a quick step back, short-term traders have been focusing on puts, as evidenced by ATVI's Schaeffer's put/call open interest ratio (SOIR) of 1.21. This SOIR is just 2 percentage points from an annual high, meaning traders targeting options that expire within three months are much more put-skewed than normal. Things are a bit different today, however, with calls being exchanged at triple the expected intraday rate, and buy-to-open activity detected at the weekly 4/22 34-strike call.

At the same time, short sellers have been moving away from the stock, according to data from the most recent reporting period. Specifically, short interest fell by 10.3% in the latest two-week period, after rising dramatically in prior reporting periods

Elsewhere, while analysts trimmed their expectations on Activision Blizzard, Inc. (NASDAQ:ATVI) following the firm's earnings miss in February, most brokerage firms have remained firmly committed to the video game stock. In fact, all but one of the 15 analysts tracking ATVI recommends buying the shares, and none deem them a "sell." 

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI