TiVo 'Riding High' With More Room For Upside
By: TiVo has been riding high ever since winning a federal patent case against rival Dish Network earlier this month, and options traders appear to think that there's more room for upside.
TiVo closed only slightly higher Friday but had been posting higher lows and new 52-week highs nearly every day since the June 2 court ruling. Options traders were hitting the upside calls again last week, most recently focusing on the July 12.50 calls purchased Friday for $0.65 on more than 8,000 contracts.
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Overall more than 16,600 calls overwhelmed just 1,100 puts traded on the day at all strikes, according OptionMonster's tracking systems. Interestingly, Dish also saw upside options activity with two large call purchases.
TiVo closed Friday up 1.24 percent to $11.44 after hitting a new 52-week intraday high of $11.62 the day before. For the calls bought Friday to turn a profit, the shares would need to rise another 15 percent by the time the options contracts expire in mid-July. The stock came into this month trading around $7.
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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com.
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