Rovi Corporation (ROVI) is a company that focusses on providing content discovery, video delivery and advertising through a number of platforms. The company’s stock is currently trading around $24.70 in a 52 week range of $16.00-$26.55. The stock performed very well last year with shares gaining over 38% in the past 12 months. Options action during today’s trading session would suggest that traders believe the stock will continue this rally through April expiration. Early in the session a trader bought 1,077 ROVI Apr 25 calls for $1.60. This is a very bullish trade that also represents volume nearly 4 times the average daily option volume in ROVI. Shares of ROVI are also trading well above the Ichimoku Cloud and the future cloud is thick and upward sloping. We believe that strong technicals and bullish order flow provide a great signal for a long setup in ROVI.
Trade: Buying the ROVI Apr 25 Calls for $1.55
Risk: $155 per 1 lot
Reward: Unlimited
Breakeven: $26.55
Andrew Keene
http://keeneonthemarket.com
