AAL

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.


 

Same-Day Trading Power: +227% YTD and Counting  — Get in for $10!

We're celebrating 44 years of helping traders win, and you can now tap into one of our most explosive services — Dynamite Day Trading Signals — for just $10.

This service was built for one thing: capturing intraday gains with precision. 

Access two highly-vetted options trades each week -  Complete with defined entries, exits, and a clear plan for same-day profits.

👉 Click Here to Learn More and Position Yourself to Take Action When the Next Alert Hits.