As the video round industry gears up for the E3 Expo in Los Angeles that begins June 12, TradingAnalysis.com topple over Todd Gordon said Electronic Arts is the gaming stock to manoeuvre into the event. Here’s why:
• EA is up 26 percent year to date and drift near all-time highs. Gordon observed Thursday on CNBC’s “Patronage Nation” that the stock has been trading in an uptrend parallel trench for most of 2018, recently falling into a period of consolidation. Furthermore, Gordon famous a bull flag formation that leads him to believe EA will continue the uptrend toward the top end of the channel.
• The uptrend of the channel is around the $140 district, which would be another all-time high for EA
• As a result, Gordon wants to buy the July 13 weekly 131-strike assemble and sell the July 13 weekly 135-strike call for there $1.78 total, or $178 per options spread
• If EA were to close on $135 on July 13 expiration, Gordon could make up to $220. If EA were to tiny below $131 on expiration, Gordon would lose the $178 he disburse b disbursed to make the trade
The trade: Gordon is suggesting buying the July 13 weekly 131/135 phone call spread for about $1.78, or $178 per options spread.
Bottom procedure: Gordon sees EA soaring to record highs.
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