Activision Blizzard, Inc. and Electronic Arts Inc.: Get Your Game On With EA and ATVI

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Video game stocks are flying high following a pair of earnings beats by Activision Blizzard, Inc. (ATVI) and Electronic Arts Inc. (EA).

Following their large price jumps, both stocks have delivered attractive pullbacks to would-be buyers. Now is as good a time as any to dive into the charts of ATVI and EA.

ATVI Stock Chart

Activision Blizzard, Inc. and Electronic Arts Inc.: Get Your Game On With EA and ATVI Trades

Source: OptionsAnalytix

First up is ATVI stock, which boasts the better looking trend.

Ever since tagging the mid-$20’s during the January/February swoon, ATVI has been climbing. An uninterrupted series of higher pivot highs and higher pivot lows has taken root, creating an uptrend worth bragging about. The oft-watched 20-day, 50-day, and 200-day moving averages are ascending and stacked on top of each other in true bullish fashion.

And with Activision stock’s all-time highs beckoning a mere 3% away, I suspect the stock continues rising for a bit yet.

The bulls’ appetite for ATVI is on full display today, with the stock’s gain doubling that of the S&P 500. That’s what the cool kids call relative strength.

With earnings now in the rearview mirror, option contracts can be scooped up on the cheap. If you think ATVI stock sees new highs in the weeks to come, buy the July $39 calls for $1.60. The risk is limited to the initial debit, while the reward is unlimited.

EA Stock Chart

EA

Source: OptionsAnalytix

EA has followed in Activision’s footsteps.

The stock blasted higher on gargantuan volume and now sits well above all major moving averages. The light volume retracement this week has allowed some shareholders to exit gracefully while setting up a lower-risk entry for those looking to hop aboard.

EA stock is matching ATVI’s gains today, showing bulls are equally enthusiastic for its future. And like Activision, Electronic Arts is knocking on the door of a new all-time high. With the rest of the market looking up here, I think EA could go the distance.

Buy the July $75 calls for $3. The risk is limited to the initial debit. The reward is unlimited.

At the time of this writing Tyler Craig had no positions in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/05/get-game-ea-atvi-trades/.

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