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Jim Strugger's Electronic Arts Options Trade

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Jim Strugger, the MKM Holdings derivatives strategist, spoke on Bloomberg Markets about a bullish options strategy in Electronic Arts Inc. (NASDAQ: EA).

The company reports earnings on Tuesday and Strugger believes it won't be as bad as things are priced in. The gaming companies had a great year, but Electronic Arts has lagged the sector a bit, said Strugger. It has recently pulled back on the news that it's shutting down the studio which was creating the "Star Wars" game.

Strugger expects the company to beat earnings expectations and raise 2018 full year guidance. To make a bullish bet, he wants to buy the January 120/135 call spread for $4. The trade breaks even at $124 or 5.46 percent above the closing price on Monday.

 

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Posted-In: Bloomberg Markets Jim StruggerOptions Markets Media Trading Ideas