Rovi Corporation (ROVI) is an IT services and consulting company focused on providing customers with solutions for digital entertainment. The company’s stock is currently trading around $24.20 in a 52 week range of $16.00-$26.55. The stock has been performing well this year with shares of ROVI rallying nearly 23% year to date. Action in the options market during today’s session would suggest that traders believe this trend will continue through April expiration. Earlier in the session a trader bought 4,168 ROVI Apr 25 calls for $0.60. Over 5,900 contracts have now traded on that line and these blocks represent volume nearly 39 times the average daily option volume in ROVI. With shares of ROVI trading above the Ichimoku Cloud and the future cloud sloping higher is seems likely that this trader is speculating on further upside in the stock rather than hedging a short position.

Block Trade: A trader bought 4,168 ROVI Apr 25 Calls for $0.60
Risk: $60 per 1 lot
Reward: Unlimited
Breakeven: $25.60

Andrew Keene


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