Options Trading News

September 23, 2016  Fri 9:27 AM CT


At least one trader apparently believes that downside potential is limited in Electronic Arts.

optionMONSTER's market scanners show that 2,000 Weekly 77 puts expiring on Nov. 4 were sold for $1.25. There was no open interest at the strike before the trade appeared, an indication new money was put to work.

Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think the risk of a big drop is limited. (See our Education section.)

EA is up 0.76 percent to $83.81 in morning trading and has risen 9 percent in the last three months. The game developer's last quarterly report on Aug. 2 was bearish, and its next earnings results are scheduled for after the close on Nov. 1.

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The game developer is up 15 percent in the last three months, and one trader apparently believes that downside potential is limited.



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