Take-Two Interactive Software, Inc. (TTWO) Bull Gears Up

Take-Two Interactive Software, Inc. (TTWO) is presenting at Piper Jaffray's tech conference today


Published on Mar 11, 2015 at 11:15 AM
Updated on Apr 20, 2015 at 5:09 PM

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is seeing a wave of bullish activity in its options pits today ahead of its appearance at the Piper Jaffray Technology, Media and Telecommunications Conference in New York. For instance, calls are changing hands at a pace 18 times what's normally seen at this point in the day, with the June 24 call taking the spot as the most popular contract.

It appears traders are mostly buying to open new positions here, with a large chunk of the activity coming from a sweep of 2,347 contracts, purchased at a premium of $2.25 each, for a total cash outlay of more than $528,000 (premium paid * number of contracts * 100 shares per contract). This speculator is betting on TTWO to extend its gains above $24 before the contracts expire at the close on Friday, June 19. Looking back, the shares haven't traded below $24 since late October.

On a long-term basis, the security has been strong, adding close to 16% year-over-year. Still, TTWO has been a target of bearish traders, as roughly 19% of the stock's float is sold short. What's more, these shorted shares represent over a week's worth of pent-up buying power, at normal daily trading levels.

Analysts, too, have been slow to credit Take-Two Interactive Software, Inc. (NASDAQ:TTWO). While half of covering brokerage firms deem the shares a "strong buy," the remaining seven analysts say they're a "hold." The stock is 1% higher today at $24.59, and should it extend its gains, there's potential for a short-covering rally and/or a round of analyst upgrades to propel the equity northward.

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