Looking at the chart, one can say it has been an interesting year for TIVO. Down over 10 percent YTD, the stock had a high-close of $13.71 on June 6 prior to a precipitous sell-off. The stock had run up following an upward revision to guidance on their May 20 earnings call, but would sell off the day after have reached this all time high on news that the company was settling patent lawsuits with Cisco (CSCO), Motorola Mobility, and Time Warner Cable (TWX). After paying a $490 million settlement to avert a trial the next week, TIVO announced it would enter into patent licensing deals with Cisco Motorola-parent Google (GOOG).
Historically, the stock has sold off 2 of the past 4 quarters, and 5 of the past 8, with a mean move of 4.9 percent. The near-term straddle is implying a move of 6.1 percent. The consensus analyst EPS estimate is negative $0.10 per share, on estimated revenue of $71.48 million.
A trader bought 5500 TIVO Aug 30th 10.5 Puts for $0.18 Opening
Buying the TIVO Aug 30th 10.5 Puts for $0.15
Risk: $15 per 1 Lot
Reward: $1035 per 1 Lot
Break-even: $10.35
Greeks of this Trade:
Delta: Short
Gamma: Long
Theta: Short
Vega: Long
