News 
Market Data 
Discover
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
$ATVI - Potential 10 bagger!
Link to full email alert:http://hosted-p0.vresp.com/938813/649be41bfc/ARCHIVE
------------------
The video game industry is not a hot sector right now. Gaming publishers such as Activision Blizzard and Electronic Arts (Ticker: EA) still haven't recovered since the '08 market crash. Although Activision has held up much better thanks to its hit franchise Call of Duty.
However, there's an opportunity here with ATVI. Activision typically rallies ahead of a new COD (Call of Duty) release similar to how Apple's stock rallies ahead of their product releases.
They're similar to Apple in another way too. They have a very loyal and strong following. Last year's Modern Warfare 3 video game release was the largest entertainment launch in history. This means all forms of entertainment ..not just games, but movies too. The two previous records were held by Activision as well by their Black Ops and Modern Warfare 2 releases. This COD franchise continues to break records in sales and with not much competition other than from EA it looks like COD will continue on strong.
Here's a three year chart showing the last two releases of Activision's titles Modern Warfare 3 and Black Ops:
Their new title, Black Ops 2, is set to release on November 13th which is in less than two months. On Friday my custom scanner spotted a trader purchasing 10,000+ February 2013 13x calls between .46 and .52 worth around $500,000. This unusual activity on top of the high open interest in the November 13x and January 13x calls is definitely intriguing.
I was originally looking at purchasing the November calls, however after going over the charts some more I think we may see ATVI continue the run after this release instead of selling off like it did with the Modern Warfare 3 release. I also don't think the February calls are needed which was what the 10,000+ contracts were bought on. So, I plan on buying the January 2013 14x calls which closed at .16 on Friday.
The reason I believe we'll see the run continue a little while longer this time is because of the technicals. On the monthly chart ATVI is in a very large wedge starting back in 2006. That wedge is coming to an end and with the Black Ops 2 release coming out in November it could be the catalyst that finally gets Activision out of this slump. The first resistance level is $14.40 from the highs of the MW3 release. But, I believe we can see it run to at least $15 this time which is resistance from December 2007 - January 2008. Depending on if those levels hold or not and how successful Black Ops 2 will be, we could potentially see a run back to the all time highs at $18-$19.
Going into the Black Ops 2 release we will most likely see volatility spike in the options. This trade could be a potential 10 bagger or more over the next few months.
Here's the monthly chart for ATVI which shows this wedge:
$RL Trade sees Ralph Lauren being range bound
Yesterday morning one trader sold 2,000 October 155x puts at $4.02 to collect $804,000. At the same that trader purchased 1,000 October 160x puts at $6.66 for $666,000.
It appears to be a trade for range bound action on RL. The goal is for RL to stay at or above $155 by expiration in order to let the 155x puts expire worthless to collect the premium while taking a slight loss on the 160x puts, however still ending up in profit overall.
For example if RL is trading at $156 by expiration the trader would collect the full $4.02 premium on the 150x puts as they would be expiring out of the money. At the same time the 160x puts would be worth $4.00 which means the trader would lose $2.66 of premium on that strike ($6.66 – $4.00 = $2.66). In the end the trader would still collect $1.36 in premium.
However in this situation because the trader purchased twice as many contracts on the 155x puts they would collect $804,000 on the 155x puts and only lose $266,000 on the 160x puts ending up with a profit $538,000.
$DXCM Trader looks for Dexcom to continue run
This morning a trader purchased 2,500 October 15x calls at .65. This is a total investment of $162,500.
Because these are October options it looks like this trader is expecting DXCM to continue its run quickly over the next few weeks.
DXCM is currently trading at $14.90. Key levels to watch for a continued rally are $15.75 from July ’11 and $16.80 from April ’11.
http://www.optionrunners.com/trade-ideas/
$FTR Enormous call volume on Frontier Communications >>
Over 30,000 contracts were traded today on FTR November 5x calls with large blocks being purchased all morning.
The calls were being bought all day long, however the largest blocks were bought just 20 minutes after the open. 10,000 contracts were purchased within about a minute at .18 (44 contracts of these 10,000 were bought at .15). Just under $180,000 of calls were purchased within this minute.
The other 20,000+ contracts were purchased evenly throughout the day, some in large blocks between .20 and .30. Although there is no way of telling, one can assume that the other 20,000 contracts, or a majority of them, were bought by the same trader as the 10,000 block in the morning. Regardless, it is extremely bullish for this name.
http://www.optionrunners.com/trade-ideas/
THWI Four trades have been marked as buys but three of them are ask slaps, IMO.
Sorry, I forgot this is an options board, now. 
I don't think everyone is back from vacation. Either that or they're still hung over from the partying.
KUTV - 45% big board play..
rising on stock repurchase program.. hit a hod of 1.39$ and now back to 1.16$, stabilized and ask hitting coming now..
way oversold.. 52 wk hig of 8.12
|
Followers
|
45
|
Posters
|
|
|
Posts (Today)
|
0
|
Posts (Total)
|
3440
|
|
Created
|
01/04/11
|
Type
|
Free
|
| Moderators | |||
Subscribe to my alerts for only $59.95 per month with a 100% money back guarantee!
Simply go to www.optionrunners.com and sign up for a free account on the forum. Then click on the "Subscribe" page for details and to purchase a subscription.
WHAT DO I TRADE AND ALERT?
► Options (monthly and weekly)
► Small cap stocks
2012 SWING ALERT TRACK RECORD
1,544.7% TOTAL GAIN
Click here for the 2012 track record with alerts and details: http://www.optionrunners.com/forum/showthread.php?1146-Premium-Plus-Alerts-track-record-thread
WAITING ON THE 2012 CONTEST TO START 
