Video Game Giant Looks Ripe for Bulls

The shares are forming an ascending triangle pattern on the charts

Jul 21, 2021 at 12:48 PM
facebook X logo linkedin

The shares of video game name Electronic Arts Inc (NASDAQ:EA) are forming a massive ascending triangle pattern on the charts, with support from the 20-day moving average. The security has also found a floor at both its year-to-date and year-over-year breakeven levels, making now an ideal scenario to buy EA calls.

EA WT Chart

Though the brokerage bunch is already mostly bullish on the security, there is plenty of room for upgrades going forward. Of the 21 analysts in question, eight still carry a tepid “hold” rating.
A shift in sentiment over in the options pits would create additional tailwinds for Electronic Arts stock, too. This is per the equity’s 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 98th percentile of its annual range. Echoing this, the equity's Schaeffer's put/call open interest ratio (SOIR) has been drifting higher, which has been a bullish signal for EA in the past.

Our recommended call has a leverage ratio of 8.8, and will double on a 10.5% jump in the underlying equity with a move to the $50 billion market cap level.

Subscribers to Schaeffer's Weekend Trader options recommendation service received this EA commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.


Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.

Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!