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Trader bets TiVo will hold recent gains

Chris McKhann (chris.mckhann@optionmonster.com)

Unusual option activity in TiVo today is looking for its current rally to hold.

TIVO is up 0.9 percent this morning to $10.24 as shares continue to rally from their 52-week low of $7.75 set in mid-July. The digital-recording company is pushing back up toward resistance around $10.50 that has been in place since shares broke down through that level back in early May.

The option volume of almost 5,000 contracts is almost 5 times TIVO's daily average in the last month, and almost all o that volume is in one trade.

A trader sold 4,500 December 10 puts for the $0.44, below the bid price at the time, according to optionMONSTER's systems. The volume was well above the open interest of 609 contracts at the start of the session, clearly indicating a new position.

The put selling is a bet that TIVO will hold above $10 through the December expiration. The trader is also showing the willingness to buy shares if they are below that strike price. (See our Education section)

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