[goodtyneguy]

When I signed up for OptionMonsters' free account so I could view their sub-group performance page, they started sending me alert emails. I usually ignore them but this one seemed interesting. Bullish call activity on EA with a $25-$29 spread for March.

To me, it looks like EA has entered a Stage 3 and will likely go sideways for a couple months before it decides if it wants to move to Stage 2 continuation or Stage 4. It seems like the bulls here are thinking that the stock has pulled back quite a bit recently, and then couple that with 4Q earnings from Xmas video games sales probably expected to be positive, then it could be a good play to go long for a couple months until it at least hits the upper range of the Stage 3 channel.

It certainly would be speculating and it doesn't exactly fit with Stan's method but I would be curious to hear some feedback on this potential play. At $25, it would be about a 10% gain and at $29 it would be about a 30% move from today's price.

Thanks.

It also has a nice candlestick reversal pattern on the weekly, if it is a participant in the seasonal pattern the Santa Claus rally - assuming it repeats this year - then it will move higher. I am reliably informed that the Santa Claus rally does not start in earnest until the last 5 trading days of the year and usually lasts a couple of days into the new year. Although it may seem that there is a lot in favour of the trade if you put the all important 200 dma moving on your chart you will see it is having trouble moving above this. For that reason I would not take the trade at this point, apart from that I would not want to get in trouble with isatrader.... only kidding