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Leaked Gaming Footage Hurting Take-Two Interactive Stock

Options volume is today running at double the intraday average

Digital Content Manager
Sep 19, 2022 at 10:42 AM
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Leaked footage Grand Theft Auto VI, the next installment of the best-selling videogame, has Take-Two Interactive Software, Inc (NASDAQ:TTWO) down 2.2% at $121.47 this morning. A hacker reportedly leaked dozens of videos depicting robberies, gunplay, and open-world driving to a message board, which sources familiar with the development of the game confirmed were real. Though Jefferies noted the leak could delay production, the company said work will continue as planned, as the hacker seeks to "negotiate a deal."

A long-term floor at the $116 level is supporting the shares today, though a ceiling at the $135-$136 region has been capping Take-Two Interactive stock since April. The security has managed to distance itself from a May 10, two-year low of $101.85, but it is down 30.1% year-to-date. 

The brokerage bunch remains optimistic towards TTWO, with 18 deeming it a "buy" or better, while six said "hold." Plus, the 12-month consensus target price of $161.67 is a 32.1% premium to the stocks current levels.

Options traders are chiming in today. Albeit amid low absolute volume, 781 calls and 700 puts have crossed the tape so far -- double the volume that's typically seen at this point. Most popular is the weekly 9/30 185-strike call, followed by the weekly 9/23 85-strike put, with new positions being opened at both.

While calls still outpace puts in the options pits on an absolute basis, the latter have been getting popular of late. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX),TTWO's 10-day put/call volume ratio ranks higher than 85% of annual readings. This indicates puts have been picked up at a much faster-than-usual clip.

 

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