Someone is trying to repair a broken trade in Take-Two
optionMONSTER's monitoring programs detected the sale of 2,183
January 2014 15 puts for $5.60. An equal-sized block was
purchased in the September 15 puts for $4.85 at the same time,
although volume was below previous open interest.
TTWO fell 1.36 percent to $10.14 on Friday. The video-game maker
has lost more than one-third of its value over the last six
months, plagued by weak sales as business increasingly shifts to
It appears the investor had previously sold the September
contracts, looking for TTWO to hold its ground above $15. Now
that the stock has fallen below that level, he or she must adjust
the position or be forced to buy shares at the strike price in
the coming weeks.
So, they bought back the September puts and rolled the position
forward in time. They now have an additional 16 months for the
stock to rebound, and collected an incremental $0.75 of premium.
The trade accounted for almost all TTWO's option volume in the
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