Electronic Arts Bearish Option Activity

Ahead of earnings trader picks up 3,000 puts.

Electronic Arts is set to report earnings May 9th, after the close. $EA is expected to earn .70-.78 cents/share for Q1. On May 8th there was unusual option activity first spotted by Will Meade, a former PM at Goldman Sachs.

The trader, or more likely fund, bought 3,085 of the 19MAY17 $94 puts. This trade suggests that Electronic Arts will miss that estimate or provide poor guidance for Q2. The put sweep is a $500,000 bet that $EA will be below 92.31 by May 19th.

Does this change how you’re positioned for earnings? Let us know in the comments below.

The Ticker Talk is devoted to providing in-depth and actionable insights for traders & investors. Connect with us on Facebook and Instagram.

Follow me on Medium to be the first to read my stories.

Enjoyed that read? Click the ❤ below to recommend it to other readers!