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Today, we’re opening a new bullish trade on Electronic Arts (NASDAQ:EA).
Sales data are pointing towards a much stronger season than expected for video game companies. From a technical perspective, we like EA as it breaks the neckline of a bullish, inverted “head-and-shoulders” pattern.
The combined fundamental and technical factors are expected to send the stock higher before earnings later this month on Jan. 30, after market close.
We don’t think it will be necessary to hold this position through earnings, so the February expiration should be fine for this trade and will keep the cost of the options relatively low.
‘Buy to open’ the EA February 115 Call (EA180216C00115000) for a maximum price of $4.50.
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