27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Initial positive reaction to Electronic Arts Inc. (NASDAQ:EA)'s "Apex Legends" season 2 previews should in part give investors confidence in the video game maker's ability to beat earnings and its own guidance in fiscal 2020, according to BMO Capital Markets.
The Analyst
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BMO's Gerrick Johnson maintains an Outperform rating on Electronic Arts with a price target lifted from $116 to $130.
The Thesis
EA's management team commented at this year's E3 event the "Apex" brand remains strong despite concerns of slowing Twitch viewership, Johnson wrote in a note. The trailer for the second season has received 3 million views in the first four days alone with a 95% like-to-dislike ratio.
BMO's note coincides with the Tuesday launch of "Apex Legends" and brings "much needed" new content, a new character, a new ranked game mode, and perhaps most important new virtual goods for sale.
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Respawn was responsible for developing "Apex Legends," and the studio -- rather than DICE -- also worked on "Star Wards Jedi: Fallen Order." As such, gamers are more likely to try the new "Star Wars" game that also received a positive reception when gameplay footage was released.
Johnson said the inclusion of a street-themed gameplay in "FIFA" soccer games "lends itself well" to in-game customization and could help the game see better than expected sales.
Price Action
Shares of Electronic Arts traded higher by 1.3% at $102.25 Tuesday afternoon.
Related Links:
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E3: Morgan Stanley's 6 Takeaways
Photo courtesy of EA.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.