While overall option volume is very light, TIVO is seeing unusually heavy activity, with 12000 contracts trading, triple the typical daily volume for the name. Puts dominate the flow with a closing customer buyer of Jan 11 puts for $2.34 early in the day when shares were near 8.85. Flow history on these suggest the buyer likely put on the position earlier this year near $2 when shares were around $9. Meanwhile, implied volatility in the options on the stock is among the big movers today. IV in TIVO is up 31 percent to 84! Shares have ranged from the low $7 level in Aug to a few brief peaks near $11. Earnings expected early-March.
About the Author (Author Profile)
Henry Schwartz is the president of Trade Alert LLC, a provider of real-time options analysis tools to leading Wall Street firms. His systems analyze hundreds of thousands of transactions per second to help professionals identify and interpret market activity in real time, supporting informed trading decisions and intelligent idea generation. He has held institutional trading and management roles with Bank of America, Bear Stearns, Salomon Brothers and the Hull Group, and made markets on the CBOE and AMEX floors in the US, and EUREX and MONEP overseas. Prior to founding Trade Alert, he led the electronic market-making group at Bank of America coincident with the launch of the International Securities Exchange. He received his bachelor’s degree in Economics from the University of California, San Diego and his MBA from NYU’s Stern School of Business.