OptionsHouse

Options Trading News

September 14, 2012  Fri 9:11 AM CT

EA: SEE CHART GET CHAIN FIND STRATEGIES
Electronic Arts has rallied to its highest levels since May, but one trader is positioning for a ceiling above the shares.

EA is up 1.6 percent to $14.47. The digital game company had declined steadily after trading above $25 last November but has been rebounding since hitting a 52-week low of $10.77 at the end of August, its lowest price since 1999.

optionMONSTER's systems show that almost 7,000 December 17 calls have traded against open interest of 938 contracts, clearly indicating new activity. They were sold from $0.48 down, with a block of 6,268 going for the bid price of $0.46.

The calls may have been sold naked, which would have a bearish bias but profit at expiration with EA anywhere below $17. If the options were traded against stock as a covered call, the position would take a maximum profit at or above $17 but would give up any gains beyond that price. (See our Education section)
Share this article with your friends


Related Stories

EA

Notable option activity in equity names

February 11, 2016

Nearing the halfway mark in today's session, here are the individual equity names with unusual option activity on optionMONSTER's ActionTracker data system.

EA

Electronic Arts sees show of support

February 2, 2016

The video-game developer is down more than 16 percent in the last three months, but one large trade is betting on a floor beneath the shares.

EA

Put selling sees floor in Electronic Arts

January 27, 2016

The game developer reports earnings tomorrow, and traders are betting that shares will hold their ground through the end of next month.

OptionsHouse

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

Sweet Spot Exceptions

As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

View more education articles »