NEW BEARISH Plays
Electronic Arts - EA - close: 17.01 change: -0.36
Stop Loss: 17.55
Current Gain/Loss: unopened
Entry on April -- at $--.--
Listed on April 17, 2013
Time Frame: exit PRIOR to earnings on May 7th
Average Daily Volume = 4.0 million
New Positions: Yes, see below
Why We Like It:
Shares of EA delivered an impressive mid-January through mid-March rally. Investors were unhappy to hear on March 19th that EA's CEO was leaving the company and that earnings would be at the low end of their prior guidance. Since then the stock has been struggling with traders selling the rallies near resistance at $18 and its 30-dma.
Now the selling pressure is pushing EA toward new relative lows. The stock is hovering near support at the $17.00 level. I am suggesting a trigger to open small bearish positions at $16.75. If triggered our target is $15.00 although we might adjust it and aim to exit near the simple 150-dma instead.
Trigger @ 16.75
Suggested Position: short EA stock @ (trigger)
- (or for more adventurous traders, try this option) -
buy the May $17 PUT (EA1318Q17) current ask $0.87