One of many hottest online game shares is gearing as much as report subsequent week.
Todd Gordon, managing director of Ascent Wealth Companions, sees tailwinds that ought to propel Activision even greater.
“Video video games are more and more interesting to older demographics; we’ve got a sluggish restart to Hollywood’s movie manufacturing; content material creators like Netflix are reaching deep into their content material pit, and online game firms will see elevated demand if Hollywood manufacturing continues to stay stifled,” Gordon instructed CNBC’s “Trading Nation” on Thursday.
Activision produces common franchises together with Name of Responsibility, World of Warcraft and Overwatch.
“As we have a look at the chart right here, I just like the resistance stage that we’re taking a look at right here, proper round $85 … We actually like this pattern, main into earnings like this, particularly within the new stay-at-home, work-at-home surroundings,” mentioned Gordon.
“If you wish to personal the inventory, it actually appears to be a good suggestion heading into earnings. If you wish to do an choices play, this is one thing that I’ve teed up for you right here — going out to the September monthlies, shopping for the 82.5 name, promoting the 87.5 name,” mentioned Gordon.
That $5 unfold expiring Sept. 18 prices roughly $1.90, mentioned Gordon, explaining that “it is $190 max threat, probably [to] make $310.”
Activision closed Friday at $82.63.
Disclosure: Ascent Wealth Companions holds Activision Blizzard.
— to www.cnbc.com