Activision (ATIV) – Gaming Explodes during COVOID – May 4th, 2020

Bullish – ATVI – $64.72

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Market Outlook:
The S&P 500 (SPY) has started to test its $284 support level and started to break below that level on Friday. If momentum accelerates to the downside, we can expect to see further weakness, however its very possible that we open on Monday back above this major support level. We expect markets to look towards earnings season for further data and guidance on Q2. 

ATVI Trade Idea:
On CNBC’s OptionsAction show on Friday, Tony Zhang looked at the growth in online and mobile during COVID-19. Gaming traffic and viewership have increased by 75% and 30% respectively in March, providing a tailwind for an industry that was already growing at a rapid pace before COVID. Expecting ATVI strength to continue, Tony suggests Selling a May $64/61 Put Vertical @ $1.18 Credit. As of Friday’s close, these puts were trading at $1.09 Credit.

We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: ATVI OptionsAction Trade


Market Outlook Update

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