Gaming stocks are on fire, and trader says EA could hit all-time
As the computer game industry prepares for the E3 Expo in Los Angeles that starts June 12, TradingAnalysis.com organizer Todd Gordon said Electronic Arts is the gaming stock to play into the occasion. Here’s the reason:
EA is up 26 percent year to date and drifting close to record-breaking highs. Gordon watched Thursday on CNBC’s “Exchanging Nation” that the stock has been exchanging an uptrend parallel channel for the vast majority of 2018, as of late falling into a time of union. Moreover, Gordon noticed a bull signal development that persuades EA will continue the uptrend toward the best end of the channel.
• The uptrend of the channel is around the $140 district, which would be another unequaled high for EA
• accordingly, Gordon needs to purchase the July 13 week after week 131-strike call and offer the July 13 week after week 135-strike call for about $1.78 add up to, or $178 per alternatives spread
• If EA were to close above $135 on July 13 lapse, Gordon could make up to $220. If EA somehow managed to close beneath $131 on lapse, Gordon would lose the $178 he paid to make the exchange
The exchange: Gordon is proposing purchasing the July 13 week after week 131/135 call spread for about $1.78, or $178 per alternatives spread.
Primary concern: Gordon sees EA taking off to record highs.