Trader Expecting Big Upside in Activision, Inc. (ATVI)

Activision, Inc. (ATVI) is a publisher of interactive entertainment products across a number of different platforms. The stock is seeing a nice move higher today on the back of better than expected quarterly earnings released after the bell yesterday. The stock is currently trading around $20.55 up nearly 6.5% on the day. The stock has been in a 52 week range of $13.27-$21.50 and is approaching its 52 week highs in trading today. Options order flow has been bullish in the name suggesting traders believe the stock is make new highs through June expiration. Earlier this morning a trader bought 3,807 ATVI Jun 23 Calls for $0.13. This is a rather aggressive trade and although cheap calls are sometimes referred to as “lottery tickets” this trade sets up well on a risk vs. reward basis. ATVI is also near breakout levels on the Ichimoku Cloud, further supporting a long case.

My Trade: I bought the ATVI Jun 23 Calls for $0.13
Risk: $13 per 1 lot
Reward: Unlimited
Breakeven: $23.13

Andrew Keene

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