KING Call Options Active

Traders are snapping up call options on King Digital (Ticker: KING) this morning as shares in the maker of Candy Crush Saga and other mobile games rally to their highest level in a week. KING shares are up 3.5% as of 10:30 am ET to stand at $17.60, though the stock is still well below its IPO price of $22.50.
Fresh interest in July expiry call options today suggests some traders are positioning for the price of the underlying to continue higher in the near term. The Jul 18.0 strike calls are the most traded contracts on the stock, with upwards of 5,500 contracts in play against open interest of 829. Time and sales data suggests most of the volume was purchased for an average traded price of $0.56 each. Buyers of the 18.0 calls stand ready to profit at expiration next month in the event that KING shares rally another 5.5% over the current price of $17.60 to exceed the average breakeven price of $18.56. Shares last traded above $18.56 back on May 7th.
Overall options volume on KING is well above the stock’s average daily reading, with more than 6,700 contracts in play thus far in the session versus an average daily level of around 1,200 contracts. The heavy interest in July expiry calls has pushed the call/put ratio on the stock to roughly 70.0 as of the time of this writing.