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

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

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Published on Dec 12, 2014 at 9:01 AM
Updated on Jun 24, 2020 at 10:16 AM

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.


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