One of the hottest video game stocks is set to be announced next week.
Activision Blizzard, reported on Tuesday, raised 39 percent this year. In comparison, the S&P 500 increased by only 1%.
Todd Gordon, CEO of Ascent Wealth Partners, sees winds pushing Activision even higher.
“Video games are increasingly attracting older demographics. We’re slowly starting to produce Hollywood movies; content creators like Netflix are delving into their content pits. Video game companies will see increased demand if Hollywood production continues to be stifled,”; he said. Gordon. CNBC Trade Nation said on Thursday.
Activision creates popular franchises, including Call of Duty, World of Warcraft and Overwatch.
“When we look at the chart, I like the level of resistance we’re looking at here, around $ 85 … We really like this trend that generates that kind of income, especially in a new stay-at-home, work-home environment,” Gordon said.
“If you want to have stocks, it really seems like a good idea to show income. If you want to make options, here’s what I created for you – I’m going out on the September calendar, buying 82.5 calls, selling 87.5 calls,” Gordon said. .
Gordon explained that the $ 5 exchange rate, which runs until Sept. 18, costs about $ 1.90, explaining that “this is the maximum risk of $ 190 [to] earn $ 310. ”
Activision closed Friday for $ 82.63.
Disclosure: Ascent Wealth Partners owns Activision Blizzard.