What's driving call action in TiVo


A large call trade tops today's option activity in TiVo.

optionMONSTER's Heat Seeker system shows that a trader bought 7,800 January 12 calls for $1 in against open interest of 14,675. At the same time, he or she sold 7,800 January 13 calls for $0.57 in volume that was almost twice the pervious open interest, so that was clearly a new position.

The trade could be opening a vertical spread for $0.43 with the stock $0.10 in the money, but it could also be rolling a short-call position higher. Most traders don't like to hold in-the-money short calls, so they could be moving the position $1 higher in what would almost certainly be part of a covered-call strategy .

TIVO is up fractionally to $12.12, just off its session high. These are the best levels since the digital-video recording company gapped down in early June, before falling to $10.50 in mid-August.

More than 18,500 TIVO options trade compared to a daily average of 4,438 in the last month.

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