A large bullish trader is playing for more time in Activision Blizzard.
optionMONSTER's Heat Seeker system shows that a trader sold 10,000 September 17 calls for $0.32 in volume below previous open interest of 69,602. At the same time, he or she bought 10,000 October 17 calls for $0.65 in volume far above open interest of just 383 contracts, indicating a new position at that strike.
The trader is apparently closing the September contracts, which expire at the end of next week, and rolling the long-call position forward. This adjustment, which cost at net $0.33, gives the investor another month for the trade to stock to rally. (See our Education section)
ATVI gained 0.41 percent to $17.04 yesterday. The game developer was at a high of $18.43 at the end of July after gapping up from the $15 level a week earlier.
Total option volume in ATVI was 20,966 contracts in the session, compared to a daily average of 3,518 for the last month.
More From optionMONSTER
- VIX below 15 as stocks extend rally
- Trade eyes potential Hasbro breakout
- Videocast: Volatility levels 'plummet'
- Activision Blizzard