TiVo Inc (TIVO) is a developer and producer of technology that enables users to navigate content such as television, broadband video and on demand video. The company’s stock is currently trading around $12.85 in a 52 week range of $9.63-$14.10. The stock has performed well this year, but has lagged the broader market, rallying only 5.7% year to date. TIVO has outperformed the market in the past 12 months however, rallying nearly 31%. TIVO stock is in a steady uptrend on the daily chart, trading well above the Ichimoku Cloud. The cloud is upward sloping into the future indicating there could be more upside in TIVO. A flurry of bullish unusual option activity in TIVO today shows that institutional money is willing to be on a TIVO rally into the end of the year. Early in today’s trading session a trader bought 5,127 TIVO Jan 14 calls for $0.45. This block amounts to a $230,000 bullish bet on TIVO. This trade also represents volume 4.5 times the average daily option volume in TIVO. With a strong chart and a high conviction bullish bet like this being placed on the stock we believe TIVO sets up well for a long stock swing trade here.
Trade: Buying TIVO Stock at $12.85 with a stop at $11.15
Risk: $1.70 per share
Target #1: $13.70
Target #2: $14.55
Target #3: $16.25
