One of the hottest video game stocks is set to report next week.
The Activision Blizzard set to report on Tuesday is up 39% this year. For comparison, the S&P 500 has risen by only 1%.
Todd Gordon, managing director of Ascent Wealth Partners, looks at Tailwind which increases activism even more.
“Video games are increasingly appealing to older demographics; we have a slow restart for Hollywood filmmaking; content creators like Netflix are reaching deep into their content pits, and video game companies are seeing increasing demand. Will see if Hollywood production continues, “Gordon told CNBC’s” Trading Nation “on Thursday.
Activation produces popular franchises including Call of Duty, World of Viktor, and Overwatch.
“As we look at the chart here, I like the resistance level that we’re seeing here, around $ 85 … We really like the trend, thus leading in earnings, especially new ones In the living house, the working environment at home, ”Gordon said.
“If you want to own the stock, it’s definitely a good idea in earnings. If you want to play an option, here’s something I’ve put in here for you – going out for the month of September, Buying 82.5 calls, selling 87.5 calls, ”Gordon said.
The $ 5 spread sept 18 costs about $ 1.90, Gordon said, “that’s a $ 190 maximum risk, potentially [to] Make $ 310. “
Activities closed at $ 82.63 on Friday.
Disclosure: Ascent Wealth Partners holds Activision Blizzard.