In merger and acquisition news, video game designer Activision announced that it acquired Bizarre Creations, a video game developer in the U.K. Financial terms weren't disclosed. Bizarre Creations will become a wholly owned subsidy of Activision.

The shares of ATVI are down 0.55% this afternoon, pulling back from the new annual high of $21.65, which was hit this morning. The stock has been in a solid uptrend along its 10-day and 20-day moving average since early August. The equity is currently struggling to overcome resistance at the 21.40 level, which marked the stock's high in early May.

Options players are optimistic toward the game designer. Schaeffer's put/call open interest ratio rests at 0.33, which is lower than 60% of the readings taken during the past 52 weeks. Meanwhile, short sellers increased their bearish bets last month, as short interest for ATVI increased by 3% to 8.7 million. However, with a short-interest ratio of only 2.3 times the stock's average daily trading volume, it is unlikely the stock will get much of a boost from short covering.