“Ian, I’ve really enjoyed Forgotten Profits, and made some good money with you so far. But I’m a bit concerned about the gaming puts you just recommended. What should we do?”
In references to the trades on Take-Two (TTWO), Electronic Arts (EA) and Activision Blizzard (ATVI), we’re holding. We see no reason to change our bearish assessment on any of these trades, technically. They were also just recommended last week. Not all trades will just move the way you want them too without patience.
For a technical idea of just how over-extended these stocks are, take a look at TTWO, for example. Notice the over-extension on MACD and RSI alone. At some point, TTWO has to put in a healthy reversal. The same holds true for EA.
While we do have some positions that haven’t panned out as well as we would have liked, we have a very strong history of success with our trades. There was also a concern about Gilead (GILD) over the last couple of days. But we’re not exiting. The underlying stock was down more than $2 this morning to $98.40 before recovering. We still have a price target of $89.90 on this stock.
Look for new trades after Thanksgiving. Low volume is creating havoc before the holiday.
If you celebrate, I hope you and your family have a happy, healthy Thanksgiving.
Ian L. Cooper
Forgotten Profits