It was clear Wall Street was underestimating EA stock
Subscribers to Schaeffer's
Weekend Player trading service just took in more than a 200% profit after closing out
Electronic Arts Inc. (NASDAQ:EA) June 90 calls. Here's a quick look at how EA stock came across our bullish radar, and how the options trade unfolded.
We first recommended EA calls back on March 13. This was a little more than a month after the company posted better-than-expected quarterly results, with the shares trading just below record highs. At the time, we found it interesting that the stock's market cap was below that of Wall Street newcomer
Snap Inc (NYSE:SNAP), despite the fact Electronic Arts' annual revenue was running better than 10 times that of the Snapchat parent.
It seemed EA -- which was up 14% year-to-date at the time -- was still being underappreciated by Wall Street at the time. Adding to this point, the average price target among analysts at the time was just 5% above EA's perch, hinting at the potential for future price-target increases and/or upgrades.
As we expected, EA's momentum on and off the charts continued. The stock began grinding higher shortly after we initiated our trade, and then the company blew away
earnings estimates on May 9, resulting in a nearly 13% single-day gain, aided by a round of bullish attention from the brokerage bunch.
