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September 23, 2016  Fri 9:27 AM CT

EA : SEE CHART GET CHAIN FIND STRATEGIES

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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