Paper bought 15,000 ATVI May27 38.5 calls & sold 30,000 ATVI May27 39.5 calls.
Activision Blizzard Inc., trading 38.70 (up .58) with an IV30 of 30.03 and an HV10 of 51.06, saw a 1 by 2 trade today.? The stock, with an ADV of 11,500 and OI of 257,000 contracts, saw a trader buy 14,000 of the May27 38.5 calls for .84 in one trade, with a total of 15,000 on the day.? Against it, the trader sold 30,000 of the May27 39.5 calls at .38.? This created a bull 1 by 2 call spread for a debit of .08.? Both sides of this trade are opening based on strike open interest.
The trader is thinking that ATVI may move higher over the next 9 days or so, but not so profoundly that the stock blows above 40 dollars a share.? At the same time the trader seems to think the IV is going to ease lower or stay stable.? At onset this trade is slightly bullish but become more and more bullish as the week passes.
This trade should be considered mildly bullish ATVI and bearish ATVI volatility.