Options/Futures
Call-Buying in Downgraded Activision Blizzard
Stock quotes in this article:ATVI
The January 11 calls have a delta of approximately 55, meaning for every dollar move in the underlying, these options should drop 55 cents. Given that ATVI was down 33 cents near the close, these calls should have moved down roughly 18 cents, but the call-buying activity pushed the price higher than the delta would suggest.
Normal option volume per day in ATVI is approximately 4,000 contracts, so this type of volume is fairly unusual for the company because the blocks in question already trumped overall daily volume. Additionally, we're seeing the market roar higher, but ATVI missed out on the rally. Despite the disappointing news out of ATVI today, at least one investor is looking for further upside in the stock throughout the next few months. Jud Pyle is the chief investment strategist for Options News Network (www.ONN.tv) and the portfolio manager of TheStreet.com Options Alerts. Click here for a free trial for Options Alerts. Mr. Pyle writes regularly about options investing for TheStreet.com.TheStreet Premium Services
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note |
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