Activision receives vote of confidence
Traders apparently believe that Activision Blizzard will hold its ground for the next three months.
optionMONSTER's tracking programs detected the sale of more than 3,400 November 40 puts for $2.29 to $2.34 on Friday. Volume was more than 7 times open interest at the strike, showing that this is fresh buying.
Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think that the risk of a big drop is limited. (See our Education section)
ATVI fell 0.1 percent to $39.98 on Friday but is up 6 percent in the last three months. The game developer reported strong quarterly results and raised guidance on Aug. 4 but fell last week on disclosures of insider selling.
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