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Activision Blizzard tried to rally yesterday, but now the bulls are throwing in the towel.

optionMONSTER's Depth Charge tracking system detected the purchase of about 3,900 August 13 puts for $1.48. Volume is more than 8 times open interest in the strike.

Shortly after those puts were bought, some 2,800 August 13 calls were sold for $0.27 and $0.28 against existing open interest. This suggests that a bullish position was closed as an investor gives up hopes for a rally.

ATVI is unchanged at $11.78 in afternoon trading, so those contracts are in the money . They will closely track downside in the struggling videogame maker, which has been moving sideways ever since the market crashed in 2008. (See our Education section)

Shares of Activision opened lower yesterday amid reports that Vivendi may unload its 61 percent stake in the company, but they quickly rebounded. Sentiment has been negative toward most traditional videogame makers as customers shift to online alternatives.

Overall option volume in ATVI is triple the daily average so far today.

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