Electronic Arts (EA) Offering Possible 62.87% Return Over the Next 21 Calendar Days

Electronic Arts's most recent trend suggests a bullish bias. One trading opportunity on Electronic Arts is a Bull Put Spread using a strike $140.00 short put and a strike $135.00 long put offers a potential 62.87% return on risk over the next 21 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $140.00 by expiration. The full premium credit of $1.93 would be kept by the premium seller. The risk of $3.07 would be incurred if the stock dropped below the $135.00 long put strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Electronic Arts is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Electronic Arts is bullish.

The RSI indicator is at 78.12 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Electronic Arts

Cyberpunk 2077’s Opening Sales Were Below Expectations. What It Means for CD Projekt Stock.
Wed, 23 Dec 2020 21:59:00 +0000
Videogame publisher (CDR) said earlier this week that it had sold 13 million copies of its latest title Cyberpunk 2077 since its launch two weeks ago, in what looks to be an effort to reassure investors after a rocky launch. The Dec. 10 launch of the Polish company’s nearly decadelong effort to make Cyberpunk 2077 didn’t go well: The game was—and still is—riddled with bugs, and was almost unplayable on prior generation console systems made by (MSFT) (ticker: MSFT) and (6758) (SNE). The release of the title was received so poorly by players that it has jeopardized the company’s reputation as a gamer-first business, raised the threat of a class-action lawsuit against the publisher, and caused CD Projekt to say that it would refund disappointed players.

3 Videogame Stocks Set to Rise in 2021
Tue, 22 Dec 2020 19:57:00 +0000
Morgan Stanley says the companies, which have a strong batch of next-year titles and add-ons, will likely hang on to new players gained amid the Covid-19 pandemic.

Electronic Arts Makes a Move
Mon, 21 Dec 2020 22:29:00 +0000
In this episode of MarketFoolery, Chris Hill chats with Motley Fool analyst Jason Moser about the latest headlines and earnings reports from Wall Street. They discuss a recent outage suffered by multiple Google services and the market's reaction to the event.

Electronic Arts (EA) Gains As Market Dips: What You Should Know
Fri, 18 Dec 2020 22:50:10 +0000
Electronic Arts (EA) closed at $142.61 in the latest trading session, marking a +1.97% move from the prior day.

Cyberpunk Fiasco Is Going to Make Gaming More Expensive
Fri, 18 Dec 2020 14:12:03 +0000
(Bloomberg Opinion) — Buying a video game these days often feels like flying with a budget airline. By the time you take into account expansion packs, loot boxes and online gaming fees, a game’s sticker price can end up being just a fraction of the ultimate cost.That’s why game maker CD Projekt SA found a special place in the hearts of gaming enthusiasts. Unlike giant rivals Electronic Arts Inc., Activision Blizzard Inc. and Take-Two Interactive Software Inc., the Warsaw-based studio made most of its money the old-fashioned way: selling a game that you can fully enjoy without having to keep spending on it.The strategy helped make its “The Witcher” series a hit — and get adapted into a Netflix show. Over the past five years, the Polish company’s shares jumped 1,800%.Now the approach seems to have come unstuck.The stock’s surge had also been driven by the breathless anticipation for “Cyberpunk 2077,” an action role-playing game starring Keanu Reeves that had secured eight million pre-orders. Released last week, players assume the role of an urban mercenary whose abilities are augmented by cyberware implants. But “Cyberpunk” has been beset by poor user reviews and technical glitches, particularly on Sony Corp.’s Playstation console and Microsoft Corp.’s Xbox.The extent of the problems prompted Sony to pull the game from its online store on Friday. CD Projekt shares fell as much as 22% on the news, extending the decline that investors have endured since Dec. 4. The company is now valued at 25 billion zlotys ($6.8 billion).It’s a tough pill for gamers and shareholders alike to swallow. “Cyberpunk” was supposed to form the basis for new online services that could bring more predictable revenue. Such services currently account for just 8% of CD Projekt’s annual sales, which had been expected to jump more than fourfold to 2.8 billion zlotys this year. At EA, live services account for 51% of sales, while game purchases are less than 40%, giving the Redwood City, California-based giant more of a cushion should it mess up new title releases.Bloomberg Intelligence analyst Matthew Kanterman estimates it will take CD Projekt three to six months to fix the snafus. Keeping its developers occupied with that could push back the rollout of live services and the recurring revenue they promise.Unfortunately for gamers, the experience highlights why it’s important for studios to beef up those add-on offerings. If a new release goes wrong and fewer people end up buying the game, that has a bigger impact on earnings if the studio doesn’t have reliable income from live services. CD Projekt’s foul-up of “Cyberpunk 2077” means gaming investors won’t have much patience for the more straightforward sales strategy again.Going the budget airline route and totting up additional costs is more likely to keep a studio flying high.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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