Posts Tagged ‘EA’

Call Spreads Trade On Electronic Arts

Call spreads trading on Electronic Arts Inc. (Ticker: EA) today look for shares in the videogame and digital entertainment company to rocket to fresh multi-year highs during the next couple of months. Shares in Electronic Arts are up 1.0% on the day at $35.65 as of 1:20 p.m. ET.
It looks like roughly 10,000 of the Sep 37.0/41.0 call spread was purchased during the first half of the trading session at a net premium of $1.00 each. The strategy starts making money if shares in EA rally more than 6.0% over the current level to exceed the breakeven price of $38.00 and reaps maximum possible gains of $3.00 per contract in the event the stock soars 15% to $41.00 by September expiration. Electronic Arts is scheduled to report first-quarter earnings after the closing bell on July 22nd. Shares in EA are down roughly 4.0% off a 52-week high of $37.26 reached in June, but is up roughly 50% since this time last year.


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Dreamworks Draws Heavy Options Volume As Shares Soar

DWA – Dreamworks Animation SKG, Inc. – Shares in Dreamworks are soaring on Wednesday, rallying as much as 18.7% to a fresh 52-week high of $33.02, after the animated feature film maker reported third-quarter profits well above average analyst estimates following the closing bell on Tuesday.

Options traders looking for shares in Dreamworks to continue to hit new highs during the next couple of weeks picked up November expiry calls on the stock this morning, helping drive overall options volume on DWA to more than four times the average daily level as of 11:00 a.m. ET. Traders positioning for shares to continue higher appear to have purchased more than 500 of the now in-the-money Nov $32 strike calls for an average premium of $0.95 apiece during the first 20 minutes of the session. Intraday gains in the price of the underlying now finds the $32 strike calls changing hands at $1.65 each as of the time of this writing.

Bullish strategists also appear to be buying the Nov $34 and $35 strike calls, purchasing around 400 of the $34 calls at a premium of $0.55 each and picking up more than 250 of the $35 calls for a premium of $0.30 apiece. Traders long the $34 and $35 strike calls stand ready to profit at expiration in the event that Dreamworks shares rally another 4.6% and 6.9% to exceed breakeven prices of $34.55 and $35.30, respectively. Shares in Dreamworks Animation are up roughly 95% since the start of the year. 

EA – Electronic Arts Inc. – Better than expected second-quarter earnings reported by videogame maker Electronic Arts and an upgrade of the stock to ‘Strong Buy’ from ‘Hold’ with…
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Takeover Chatter Sparks Heavy Volume In Electronic Arts Options

 

Today’s tickers: EA, BKS & SNDK

EA - Electronic Arts, Inc. – Speculative bullish bets are on the rise in Electronic Arts this morning after the New York Post reported, according to unnamed sources, that the second-largest U.S. video game publisher has been approached by private equity firms and may be interested in a $20.00 a share deal. The latest from the rumor mill sent shares in EA up as much as 10% to $14.39 and drove options volume to roughly 10 times the average daily volume by 12:30 p.m. in New York. More than 63,000 contracts have traded on Electronic Arts so far today, with approximately three calls changing hands for each single put option in play. Traders looking for further upside in the near term picked up calls at the Sept. $14 and $15 strikes, paying average premiums of around $0.83 and $0.47 apiece, respectively. The largest trade in EA options this morning was the purchase of a block of 15,855 of the Sept. $16 strike call at a premium of $0.25 each. The buyer of the contracts stands ready to profit at expiration next month should EA shares surge 18% over the current price of $13.78 (EA share price as of 12:45 p.m. ET) to top the breakeven point at $16.25. Of course, the strategist could lose the full $0.25 in premium paid to establish the position should shares remain south of the $16.00-level at expiration.

BKS - Barnes & Noble, Inc. – Bears are snapping up downside puts on Barnes & Noble for a second consecutive day as shares in the bookseller continue to sell off. Shares are down 1.3% on the day at $12.38 in afternoon trading. The most active contracts are the Sept. $11 strike puts that have changed hands 2,200 times in the first half of the session against open interest of 1,589 contracts. It looks like most of the puts were purchased at a premium of $0.90…
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Call Spread Predicts Continued Gains In Store For Gap

 

Today’s tickers: GPS, TJX & EA

GPS - Gap, Inc. – The operator of retail chains Gap, Banana Republic and Old Navy popped up on our market scanners after a large bullish spread was initiated in the May expiry. Shares in Gap are up 2.15% at $26.70 today on the heels of an upgrade to ‘Above Average’ with a target price of $32.00 at Caris & Co. Gap’s shares rallied sharply in the first quarter – currently up 44.5% since the start of 2012 – and it looks like one trader employed a sizable debit call spread to position for the up-trend to continue in the near term. The trader appears to have purchased 6,500 calls at the May $28 strike for a premium of $0.58 each, and sold the same number of calls up at the May $30 strike at a premium of $0.17 apiece. Net premium paid to initiate the spread amounts to $0.41 per contract, thus positioning the strategist to profit at expiration as long as shares in Gap rally another 6.4% to top the breakeven point at $28.41. Maximum potential profits of $1.59 per contract are available on the trade in the event that shares surge 12.4% to trade above $30.00 at May expiration. The Gap, Inc. is scheduled to report first-quarter earnings after the closing bell on May 17th.

TJX - TJX Companies, Inc. – Shares in the off-price retail chain operator kicked off the trading week in rally-mode, trading up 0.70% at the open to a new record high of $39.99, but reversed earlier gains to stand 0.20% lower on the day as of 11:20 a.m. in New York. The most active options on TJX Companies suggest at least one strategist is positioning for fresh all-time highs in the price of the…
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Phil's Favorites

Your brain's built-in biases insulate your beliefs from contradictory facts

 

Your brain's built-in biases insulate your beliefs from contradictory facts

These psychological tendencies explain why an onslaught of facts won’t necessarily change anyone’s mind. Francesco Carta fotografo/Moment via Getty Images

Courtesy of Jay Maddock, Texas A&M University

A rumor started circulating back in 2008 that Barack Obama was not born in the United States. At the time, I was serving as chair of the Hawaii Board of Health. The director and deputy director of health, both appointed by a Republican governor, ...



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ValueWalk

Does the Cleveland Fed's Systemic Risk Indicator Predict Stress?

By Jacob Wolinsky. Originally published at ValueWalk.

Cleveland Fed’s Systemic Risk Indicator is Reliable, Timely, and Valid When Predicting Stress

The Cleveland Fed’s systemic risk indicator (SRI) was developed in response to the financial crisis of 2007-2009 in the hope that it could provide regulators with advance warning of conditions that might warrant a corrective response.

Q3 2020 hedge fund letters, conferences and more

In this ...



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Politics

Socialism is a trigger word on social media - but real discussion is going on amid the screaming

 

Socialism is a trigger word on social media – but real discussion is going on amid the screaming

‘Tug-of-words’ posts debating the merits of socialism versus capitalism are all over social media platforms. pxfuel

Courtesy of Robert Kozinets, USC Annenberg School for Communication and Journalism

The word “socialism” has become a trigger word in U.S. politics, with both positive and negative perceptions of it split alo...



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Zero Hedge

Owner Of NYC Bar Arrested Days After Declaring "Autonomous Zone" To Dodge Pandemic Restrictions

Courtesy of ZeroHedge View original post here.

The co-owner of a bar on Staten Island which declared itself an 'autonomous zone' after its liquor license was yanked over COVID-19 lockdown violations was arrested and perp-walked out of the business in handcuffs on Tuesday night.

Photo via ABC7NY

A...



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Chart School

Gold Chart Review

Courtesy of Read the Ticker

Gold swing trade is due, lets review some charts to see if it is a viable move.

The seasonal period of gold is now upon us, gold should advance for the next 3 months.


Gold Gann Angle Chart ...


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Gold Channel Chart .. close up!



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Gold Channel Chart


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Kimble Charting Solutions

Are Commodity Prices About To Let The Good Times Roll?

Courtesy of Chris Kimble

Commodities have traded “heavy” for the past decade, as bond yields remain low and inflationary forces remain under wraps. But this trend could be up-ended as we head into 2021.

Today’s chart 2-pack looks at long-term “monthly” charts of the Thomson Reuters Equal Weight Commodity Index and the 10-Year US Treasury Bond Yield.

Over the past decades, Commodities and Yields have shown weakness. The Commodity Index has managed ...



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Biotech/COVID-19

Rapid COVID-19 tests can be useful - but there are far too few to put a dent in the pandemic

 

Rapid COVID-19 tests can be useful – but there are far too few to put a dent in the pandemic

Rapid tests for COVID-19 are easy to administer and give fast results. AP Photo/Julio Cortez, File

Courtesy of Bonnie LaFleur, University of Arizona and Katherine Ellingson, University of Ari...



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Digital Currencies

Five Reasons Why Bitcoin is Going Up

 

Five Reasons Why Bitcoin is Going Up

Courtesy of 

Call it the “Respectability Rally”…

A few reasons for Bitcoin’s return to the record highs. It’s about $18,500 as of this writing, matching the previous highs from 2017’s original explosion.

Reason one: It’s going up because it’s going up. Don’t scoff, this is the reason most things in the markets happen and then the explanations are called for afterwards. I’m in financial television, I have literally watched this process occur in real-time. The more something moves in a given direction, the more peop...



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Mapping The Market

COVID-19 Forces More Than Half of Asset Management Firms to Accelerate Adoption of Digital Marketing Technology

By Jacob Wolinsky. Originally published at ValueWalk.

There is no doubt that the use of technology to support client engagement initiatives brings both opportunities and threats but this has been brought into sharp focus this year with the COVID-19 pandemic.

The crisis has brought to the fore the need for firms to enable flexibility in client engagement – the expectation that providers will communicate to clients on their terms, at their speed and frequency and on their preferred channels, is now a given. This is even more critical when clients are experiencing unparalleled anxiety from both market conditions and their own personal circumstances.

...

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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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Promotions

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TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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