Lions Gate Entertainment Corp (LGF.B)

[llessurK]

Someone bought 8k LGF $37 Dec calls last Thursday. Call volume was unusually high that day at 5 times the daily average with calls options outnumbering put options 4 to 1.

Pete Nagarian pointed this out on Fast Money after the close:


However, the stock closed -5% the following Friday and then gapped down at todays open dropping another -5% today with over 2 million in volume only one hour into the session but then gradually moved back up gaining back most of the days losses at one point and finally closing only a half a percentage point down closing back above the 50-day moving average. Makes sense since the short interest was already high and bears can no longer pile into the bid short because of the uptick rule.

I think most of the short term downside players already covered into the close today judging by the later days price action and I think the movie gets another bump to the number 1 spot over the holiday weekend (at least in the young adult PG-13 category as there doesn't seem to be anything competing with it at the moment).

Also, that out-of-the-money call volume last week was curious. Maybe someone knows something. Time will tell.