Traders expect Electronic Arts Inc. (NASDAQ:EA) to hold a steady ground in the coming weeks. According to option MONSTER’s program shows that 2,750 Weekly 73 puts expiring on Aug.12 were sold in one print for $1.10. This is a new position in the open interest since volume was more than 240 times in the strike.
Short usually puts alockin a price where investors have to buy a stock while letting them gain premium. Traders usually opt for this technique when they like a particular stock and believe that the risk of a big drop is limited.
EA is currently down by 1.25% to $78/54 in afternoon trading but it has been up by 26% in the last three months. The game developer recently reported bullish results on May 10 and is set to announce its next quarterly result after the close on August 2.
In other news, EA has introduced NBA LIVE Mobile, a mobile app that offers play in NBA games. It is free for both Apple Inc. (NASDAQ:AAPL)’s iOS and Alphabet Inc (NASDAQ:GOOGL)’s Android device, though it offers in-game purchase to enhance the experience of a player once a player is hooked on the product. EA has been very keen to develop a complete spot portfolio that stretches from console to mobile, featuring customizable digital options as part of its Ultimate Team series offering.
During the last quarter, the company reported digital sales accounting for 55% of overall revenue, while adjusted revenue from thesale of Ultimate Team Sports product jumped 26%. With the introduction of NBA Mobile, it will add to this total. CEO Andrew Wilsonhas discredited theories that Mobile gamers don’t want to play sport and sports games are not played on games. He has indeed noted that they are going to launch both FIFA and NBA LIVE, in the same way, this year.