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Trade of the Day: Electronic Arts (EA)

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Today, we're opening a new bullish trade on Electronic Arts (NASDAQ: EA ) .

Sales data are pointing towards a much stronger season than expected for video game companies. From a technical perspective, we like EA as it breaks the neckline of a bullish, inverted "head-and-shoulders" pattern.

The combined fundamental and technical factors are expected to send the stock higher before earnings later this month on Jan. 30, after market close.

We don't think it will be necessary to hold this position through earnings, so the February expiration should be fine for this trade and will keep the cost of the options relatively low.

'Buy to open' the EA February 115 Call (EA180216C00115000) for a maximum price of $4.50.

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You can learn more about identifying price patterns and using them to project how far you think a stock is going to move in our Advanced Technical Analysis Program .

InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader , a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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