Brightcove gets Vote of Confidence

A trader is looking for Brightcove to hold above recent lows after it reports earnings this week.

The company provides cloud-based solutions for digital media, and today’s big option activity is in the November 5 puts. All of today’s 5,238 options that trade in BCOV are at that strike, eclipsing the daily average and topping the total open interest as well. The puts were all sold for the bid price of $0.25 in volume that dwarfs the previous open interest of just 74 contracts, so this is clearly a new position.

The put seller is betting that BCOV will stay above $5 through expiration in mid-November. If it doesn’t, the trader will face the obligation to buy shares at that level.

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