TIVO is off 19 cents to $9.35 and options volume on the stock is running 4X the daily average heading into earnings. The company reports earnings after the closing bell today. 6,300 puts and 3,000 calls traded on the stock heading into the results. Nov 9 puts are the most actives. 2,500 traded and most of the flow has been in smaller lots. The top trade is 200 contracts for 66 cents. Sep 9 puts are the second most actives. 1,400 traded. Sep 10 calls and Nov 10 puts are seeing interest as well and 30-day ATM implied volatility in TIVO is up 14.5 percent to 51. The stock fell 4.7 percent on 5/31 when earnings were last reported. Average daily post-earnings move over the past four quarters, which includes a 17 percent pop higher a year ago, is 6.7 percent. Order flow ahead of the news seems to reflect some concerns about a possible post-earnings drop after today.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.