What’s Taking TIVO to Multi-Year Highs?

| January 31, 2013 | 0 Comments More

TIVO ticks 44 cents higher to $12.95 in active trading of 2.3 million shares and moving to 52-week highs after a two-week 8.5 percent rally. Options action is running 3X the daily average. 12,000 calls and 2,650 puts traded in the name so far. Feb $13 calls are the most actives. 4,870 contracts traded. Feb 12 calls, Feb 12 puts and Mar 13 calls on the stock are busy as well. 30-day ATM implied volatility jumped 14 percent to 61.5 and is at multi-month highs. Shorts are getting sqeezed as the stock breaks above previous resistance highs just below $13, while recent reports indicate that hedge funds like Citadel, SAC, and Omega Advisors have been adding positions in shares of the DVR-maker. The company has had several important court victories in recent years and has claims pending against Motorola and Cisco. Lastly, takeover speculation might be fueling some of the unusual activity. An article in Fortune published Monday noted that Tivo, “would make an attractive acquisition candidate for a tech giant looking for a compelling set-top box software, a company like Apple or Google.” — LINK TO STORY.

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Category: All Stocks, Personal & Household Goods, Small Cap Stocks

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About the Author (Author Profile)

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.