Rolling Option Calls Well I've held some calls for some time now that are nearing expiration so I'm looking to roll them over instead of taking profits on them for my overall longer term bullishness on this company. Also, we have had some good press releases for EA come out this weekend on Seeking Alpha and another article arguing the "bull case" for the company in Barron's the previous week. So I'm comfortably long the company and looking to roll my calls with price targets for some profit taking being $65 and $70. I grabbed $70 as a price target from previous resistance dating a couple months back (I'll attach a screen shot of the monthly chart). Do note that its a slow grind up so patience is required as you can be bouncing between the "red / green P/L" for a while before going solidly into profit on the trade do make sure to pick your expiration's wisely if your a shorter term options player.
Short Term Resistance: $63.05/.38
Cheers =)
1EA trade ideas
EA finding resistance at 2007 highEA has been in a good uptrend since 2012 and I have often looked at it during this time. However, it is susceptible to deep pullbacks so has never been worth serious consideration.
More recently (since the October 2014 low) a more reliable trend has begun to develop. The daily 50sma is now working well as support. Gaps up also have been corresponding with earnings announcements.
Unfortunately there is resistance ahead. Yesterday's gap up was a bearish reversal bar (a shooting star) which closed below the 2007 high ($61.62). The next major resistance beyond this is the 2005 high of $71.16.
If it were not for these two price obstacles I would consider a small risk buy - but far safer is to wait for the break above $71.16. By then a clearer trend structure should be visible - either as confirmation of a good trend or not. So EA is a stock to reconsider if price breaks the 2005 high.
Electronic Arts - EA - Daily - Top formation - Overbot Hidden Level Resistance just over $37 and my RgMov "trend indicator" says EA is in a downtrend. EA is overbought in CCI and turning back down below +100.
Target $34 and under $33. Be willing to sell up to $37.20 from $36.17 last.
Tim
3:47PM Friday, August 15, 2014 36.17 last
*** Hidden Resistance is available in the "Marketplace Add-on" in the Indicators Section so that the green "key hidden support" lines will draw automatically on your chart. Monthly and annual subscriptions are available.