I initiated a small position in Activision (ATVI) a few weeks ago when the share price dropped below the price that Vivendi (the company buying ATVI) is offering - $27.50.
As the markets have pulled back a little over the past week, Activision has dipped again. As of this morning, it was a little under $26.
So, in anticipation of good earnings today, I bought some Activision calls. The February 27.5 calls were only at 30 cents/contract, so though the time frame is pretty short, I pulled the trigger.
I anticipate great earnings today; Activision led holiday sales on many systems with Call of Duty 4 and Guitar Hero 3. I believe that they'll beat (or at least not disappoint), people will remember that they'll be getting at least $27.50 for their shares in a few months, and the price will pop up a few dollars within the next few sessions.
Disclosure: Long ATVI