Options Traders See Further TiVo Upside

By Pete Najarian, co-founder of OptionMonster

TiVo(TIVO Quote) has been riding high ever since winning a federal patent case against rival Dish Network (DISH Quote) earlier this month, and options traders appear to think that there's more room for upside.

TiVo closed only slightly higher Friday but had been posting higher lows and new 52-week highs nearly every day since the court ruling on June 2. Options traders were hitting the upside calls again last week, most recently focusing on the July 12.50 calls purchased Friday for 65 cents on more than 8,000 contracts.

Overall, more than 16,600 calls overwhelmed just 1,100 puts traded on the day at all strikes, according OptionMonster's tracking systems. Interestingly, Dish also saw upside options activity with two large call purchases.

TiVo closed Friday up 1.24% to $11.44 after hitting a new 52-week intraday high of $11.62 the day before. The stock came into this month trading around $7.