Options News
$ATVI call prices double in hours
Option traders who opened bullish positions in Activision Blizzard this morning were reaping large profits by the afternoon. About an hour after the opening bell, Investitute’s tracking systems found that 4,400 Weekly $78 calls expiring on July 27 were purchased for $1.03 to $1.15 with shares at $76.84. These were clearly new positions, as open […]
Option traders who opened bullish positions in Activision Blizzard this morning were reaping large profits by the afternoon.
About an hour after the opening bell, Investitute’s tracking systems found that 4,400 Weekly $78 calls expiring on July 27 were purchased for $1.03 to $1.15 with shares at $76.84. These were clearly new positions, as open interest in the strike was a mere 84 contracts before the session began. Investitute co-founder Pete Najarian cited the unusual activity on CNBC’s “Halftime Report” today.
Those calls swelled above 10,900 in volume as prices rose to $2.65 by this afternoon, more than 2.5 times their initial purchase price. The stock rose 3.16% at the same time, showing how quickly options can far outpace gains in their underlying shares.
Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.
ATVI was up 3.18% to $78.61 today. Disney will air the game developer’s Overwatch League on ESPN, ABC, and several other channels, according to an agreement announced this morning.