Big Trades On Activision Blizzard Stock After Microsoft Wins Acquisition Case

Activision Blizzard, Inc. ATVI stock traded sharply higher on Tuesday after Microsoft Corp MSFT won a court permit to move forward with its $69 billion deal to buy Activision.

On CNBC’s "Options Action,"  Mike Khouw of Optimize Advisors said Activision traded at 7x its average daily options volume and was the third-busiest stock overall on Tuesday.

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There was a buyer of 2,000 of the July 14 weekly 85-90-call spreads at an average price of $1.20 per contract and he did so 10 minutes before the news, Khouw mentioned.

The decision by Judge Jacqueline Scott Corley in San Francisco means Microsoft could close its merger with Activision ahead of a July 18 deadline everywhere except in the U.K., which vetoed the deal in May, Bloomberg reported. Although, U.K. regulators reached an agreement with the two companies on Tuesday to temporarily suspend their ongoing London appeal over the merger.

Price Action: Activision shares jumped 10% to close at $90.99 on Tuesday, and added 0.1% in today’s pre-market trading session.

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