Last-Minute Bulls Line Up for Activision Blizzard, Inc. (ATVI)

Eleventh-hour traders targeted Activision Blizzard, Inc.'s weekly 12/12 21-strike call

Digital Content Group
Dec 12, 2014 at 9:01 AM
facebook twitter linkedin

Activision Blizzard, Inc. (NASDAQ:ATVI) gave back 0.7% yesterday to close at $20.34, but that didn't deter call traders. In fact, the contracts were exchanged at double the expected daily pace, and outnumbered puts by a 7-to-1 margin. Per the stock's 30-day at-the-money implied volatility -- which rose 2.5% to 31.1% -- short-term strikes were in focus.

While the February 21 call was most active (and tied to stock), shorter-term bettors zeroed in on the weekly 12/12 21-strike call, where buy-to-open activity was detected. Trade-Alert confirms this theory, as well. In other words, these traders believe ATVI will end today's session -- when the weekly series expires -- above $21.

This penchant for buying to open Activision Blizzard, Inc. (NASDAQ:ATVI) calls over puts has been standard fare in recent weeks. The equity's 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) checks in at 8.26, in the 81st percentile of its annual range. This bullish attention is understandable, given ATVI's longer-term technical strength.


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners