tsla

Activision Blizzard Stock Flashing Bull Signal

ATVI options are affordably priced at the moment

Deputy Editor
May 17, 2022 at 1:21 PM
facebook X logo linkedin


The shares of Activision Blizzard Inc (NASDAQ:ATVI) gapped higher earlier this year, after it was announced that Microsoft (MSFT) would acquire the company for $68.7 billion. Though still up 17.6% year-to-date, the stock has been waning on the charts since then. However, its recent dip has ATVI near a historically bullish trendline that could push it back toward its January peak.

Specifically, Activision Blizzard stock just came within one standard deviation of its 100-day moving average, after spending considerable time above the trendline. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, similar signals have occurred five times during the past three years, with ATVI averaging an 8% gain in 80% of the occurrences. A similar move from its current perch would put the equity above the $84 level.

ATVI Chart May 17

The brokerage bunch is leaning pessimistic toward the gaming name, so a shift in sentiment could provide tailwinds. Currently, 12 of the 21 analysts in coverage carry a "hold" rating, with one "strong sell" also on the books.

Plus, now looks like an affordable time to speculate on the stock's next move with options. The stock's Schaeffer's Volatility Index (SVI) of 16% stands higher than 25% of readings in its annual range, implying that options players are pricing in relatively low volatility expectations at the moment. What's more, ATVI tends to outperform these volatility expectations, per its Schaeffer's Volatility Scorecard (SVS) tally of 95 out of 100.

 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.