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Tony Zhang's Electronic Arts Trade

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On CNBC's "Options Action," Tony Zhang said the rising COVID-19 cases around the country have put the lockdown stocks like Electronic Arts Inc. (NASDAQ: EA) back into favor.

He thinks the stock might move back to $145 and he wants to buy the January $135/$145 call spread for $3.70, which is 2.7% of the stock's value. The trade breaks even at $138.70 or 2.14% above the closing price on Friday. In case the stock moves to $145 or higher at the January expiration, the trade is going to reach its maximal profit of $6.30.

 

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Posted-In: CNBC Options Action Tony ZhangOptions Markets Media

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