By Dan Darrow
November 07, 2022
Intraday Update: ATVI, BITO
Indices are having a quiet afternoon as traders hit the pause button ahead of tomorrow's midterm elections, but there are a couple of positions that need to be managed:
- ATVI will report earnings after the close today, and the stock is at a new relative low ahead of the report. This was the deadline we gave the stock and the Jan20 $82.50 - $90 call spread roll up to act better to justify holding or rolling down the position, but the weak action makes it tough to stick with the trade. The long-held position will be closed this afternoon, and we will watch to see if management gives any commentary on the state of the merger. Technically, though, the stock would need to reset above 78 to begin to set up for a bull trade again.
- We need to roll out BITO. There was no follow through over the weekend on Bitcoin, so we are going to adjust out the BITO Nov18 $13 - $17 call spread to a Dec16 $14 - $17 call spread to buy more time for the trade. The Nov18 $10 - $7 put spread can also be closed now.
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**As of the date and time of publication