TiVo is drawing bullish option activity ahead of its earnings report tomorrow.
More than 8,200 January 11 calls traded in a strong buying pattern on Friday, led by prints of 3,488 and 3,000 that went for $1.08 and $1.23, respectively, according to OptionMonster's real-time tracking systems. The volume was well above the strike's open interest of 2,605 contracts before the session began, indicating that new positions were established.
These calls lock in the price where traders can buy the stock through mid-January, no matter how far it might rise. But these contracts will track the share price closely because they are in the money and could rapidly lose value if shares stay at current levels or decline in that time.