Activision Blizzard, Inc. - ATVI - close: 12.16 change: +0.41

Stop Loss: 11.59
Target(s): 13.45
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
It looks like video game giant ATVI may have found a bottom. Last week when the market was hitting new relative lows shares of ATVI were consolidating sideways between resistance at $12.00 and support at the 200-dma near $11.60. Today's market-wide surge higher has fueled a bullish breakout in ATVI.

If the market continues to rally I suspect ATVI will outperform. Shares certainly outperformed today with a +3.4% gain. I am suggesting small bullish positions tomorrow morning but only if both ATVI and the S&P 500 open positive. If the S&P 500 opens flat then we'll base our entry on the move in ATVI alone. I am suggesting a stop loss at $11.59. We will set our target for $13.45.

*See Entry Details Above*

Suggested Position: buy ATVI stock @ the open tomorrow

- or -

buy the FEB $13 call (ATVI1218B13) current ask $0.43

Annotated chart:

Entry on November xx at $ xx.xx
Earnings Date 02/09/12 (unconfirmed)
Average Daily Volume = 14.9 million
Listed on November 28, 2011