One of the most popular video game stocks is getting ready to report next week.
Activision Blizzard, to be reported Tuesday, has recovered 39% this year. For comparison, the S&P 500 is up just 1%.
Todd Gordon, managing director of Ascent Wealth Partners, sees tailwinds that should propel Activision even further.
“Video games are becoming more attractive to older demographics; we have a slow reboot of Hollywood film production; content creators like Netflix are reaching their content pit, and video game companies will see increased demand if Hollywood production is still stifled, “Gordon told CNBC’s” Trading Nation “on Thursday.
Activision produces popular franchises like Call of Duty, World of Warcraft, and Overwatch.
“Looking at the chart here, I like the resistance level that we’re seeing here, around $ 85 … We really like this trend, which leads to gains like this, especially in the new home stay, work environment in home, “Gordon said.
“If you want to own the shares, it certainly seems like a good idea to make a profit. If you want to make an option move, here is something I have prepared for you here: go to the months of September, buy the Call 82.5, selling the call 87.5, “Gordon said.
That $ 5 spread that expires on September 18 costs approximately $ 1.90, Gordon said, explaining that “it’s a maximum risk of $ 190, potentially [to] earn $ 310. “
Activision closed Friday at $ 82.63.
Disclosure: Ascent Wealth Partners owns Activision Blizzard.
Disclaimer
.
