Q2 STOCKS TO BUY

Activision Blizzard Stock Lags Ahead of Earnings

Analysts are bullish, while options traders are speculating on both sides

Deputy Editor
May 4, 2021 at 12:24 PM
facebook X logo linkedin


The shares of Activision Blizzard Inc (NASDAQ:ATVI) are cooling off today, last seen down 3.4% to trade at $88.09. The security is poised to close blow the $89 level for the first time since late January, and are contending with long-term support at its 150-day moving average today. Now down 4.6% in 2021, today's negative price action comes just ahead of the company's first-quarter earnings report, due out after the close today. Below, we'll dig deeper on Activision Blizzard stock's technical setup, and why things may get a bit worse for the equity before they get better.

ATVI Chart May 4

Analysts are quite bullish on ATVI. Of the 19 brokerages covering the stock, 16 sport a "buy" or better rating, with no "sells" on the books. Plus, the 12-month consensus price target of $113.29 is a hefty 28.4% premium to current levels, leaving ample room for a round of post-earnings price-target cuts if needed.

The options pits have started to tilt toward puts. The stock's 10-day put/call volume ratio of 0.87 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than all other readings from the past year. So while calls still outnumber puts on an absolute basis, the high percentile implies a healthier-than-usual appetite for puts of late. 

There's a similar activity in today's options pits. So far, 32,000 calls and 24,000 puts have crossed the tape so far -- four times what's typically seen. Most popular are the June 100 and 95-strike calls, with positions being opened at the latter.

A look back at the video game company's earnings history reveals that only three of the past eight sessions had a positive post-earnings response. The security averaged a next-day return of 3.9%, regardless of direction. This time around, the options market is pricing in a much bigger move of 8.1%. 

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter