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Activision Call Options Hot on Video Game Launch

ATVI bulls are picking up weekly call options

Aug 27, 2019 at 11:47 AM
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The shares of Activision Blizzard, Inc. (NASDAQ:ATVI) popped higher today, after the video game maker launched "World of Warcraft Classic." Players are reportedly facing lengthy queues just to get into the game. ATVI shares are now pacing for their highest close of 2019, and bullish options bets are flying off the shelves at nine times the average intraday pace.

Activision stock was last seen 5.6% higher at $51.40. If today's gains hold, the equity will have successfully toppled resistance in the $49-$51 area, which has acted as a ceiling for most of the year.

ATVI stock chart aug 27

At last check, ATVI has seen roughly 63,000 call options change hands already today -- nine times the average intraday amount. For reference, the security trades just 17,000 contracts, on average, each day. Meanwhile, about 12,000 puts have crossed the tape, already surpassing its average daily volume of fewer than 9,500 puts.

Most popular is the weekly 9/6 52-strike call, where close to 11,000 contracts have traded. A good chunk of those calls were likely bought to open in big sweeps, with the buyers expecting ATVI shares to topple $52 (and then some) by Friday's close, when the options expire.

However, today's appetite for bullish bets is just more of the same for ATVI. On the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock sports a 10-day call/put volume ratio of 3.41. This ratio stands higher than 80% of all others from the past year, pointing to a bigger-than-usual leaning toward long ATVI calls over puts in the past two weeks.

 

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