Activision, Chubb Trading Down Despite Market Rally

Activision Blizzard (ATVI) shares are down 23 cents, or 2%, to $11.07 out of the gate despite the big rally we saw in the market following the unemployment report surprise. The February 13 calls have traded more than 12,800 times this morning for around 25 cents, and it looks like a big call seller giving up the ghost. These calls are home to open interest of 25,000 contracts, which could possibly mean this investor is getting out while he can. Additionally, continued pressure from Wal-Mart (WMT)’s plans to reduce game prices could bring the stock down further.

Chubb Corp. (CB) shares are down 16 cents to $48.68 without any news from the company. This is another name that is trading down on this rallying morning, as at least one investor could be looking to close a moderately bullish position. The January 45 puts have traded 5,000 times for around 50 cents versus open interest of 5,800 contracts. This could mean the investor could have bought these out-of-the-money puts to close.

The SPDRs (SPY) is up $1.60 to $111.98 this morning following November’s unemployment report that surprised the market in a positive way. Chief Investment Strategist Jud Pyle continues to focus on jobs, which he highlighted in a Fox Business interview on Wednesday. The December 112 straddle is trading at $3.33, or 3% of strike, compared to the December 110 straddle that closed Thursday at $3.65.