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Take-Two pullback brings out buyers

By optionMONSTER,  April 23, 2012, 11:49:22 AM EDT

The bulls apparently think that Take-Two Interactive Software has fallen far enough.

optionMONSTER's Heat Seeker tracking system detected the purchase of about 2,000 June 14 calls for $0.80 and the sale of an equal number of June 15 calls for $0.40. The trade resulted in a cost of $0.40.

Known as a bullish call spread , the strategy will earn a maximum profit of 150 percent if the videogame maker is at or above $15 on expiration. It appeared after the stock lifted from its lowest level all year. (See our Education section)

TTWO is down 1.13 percent to $13.88 today and is down 12 percent in the last month. The stock has been swinging wildly since the market bottomed in 2009 and is currently attempting to hold support at the same $13.60-$14 area where it peaked in December.

Today's trader apparently views it as a higher low and wants to get long on the pullback. TTWO's last two earnings reports have beaten estimates.

Overall option volume is 5 times greater than average, according to the Heat Seeker. Calls outnumber puts by 190 to 1.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Options

Referenced Stocks: TTWO



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