One of the hottest video game stocks is reporting next week.
Activision Blizzard, which will be reported on Tuesday, has increased by 39% this year. By comparison, the S&P 500 has risen only 1%.
Todd Gordon, CEO of Ascent Wealth Partners, sees tailwinds that should drive Activision even higher.
“Video games are appealing to older demographics; we have a slow restart of Hollywood movie production; content creators like Netflix are reaching deep into their content pit, and video game companies will see increased demand if Hollywood production continues to stifle,”
Activision produces popular series including Call of Duty, World of Warcraft and Overwatch.
“When we look at the chart here, I like the level of resistance we’re looking at here, about $ 85 … We really like this trend, which leads to income like this, especially in the new home, work environment,” Gordon said.
“If you want to own the stock, it really seems like a good idea to go into income. If you want to make an alternative play, here’s something I’ve lost for you here – go out for the September months, buy 82.5 calls and sell The 87.5 call, Gordon said.
The $ 5 spread that expires Sept. 18 costs about $ 1.90, Gordon said, explaining that “there is a $ 190 maximum risk, potentially [to] earn $ 310. “
Activision closed Friday at $ 82.63.
Publication: Ascent Wealth Partners owns Activision Blizzard.