EA Sees Large Option, Exit Likely (ERTS)

Posted in Options 
November 23rd, 2010

Electronic Arts Inc. (NASDAQ: ERTS) has what appeared to be extremely unusual options trading volume on the surface.  It may just be a close-out trade.  An options screen showed that the JAN-2011 $20 CALLS showed a whopping 75,877 contracts traded ay 12:15 PM EST, the equivalent of more than 7.5 million shares on a fully leveraged basis.  After looking deeper there is also an open interest listed as being 90,053 contracts  and the last trade was on the bid-side of the market at $0.07 per contract.

Shares are down 2.6% at $15.01 and trading volume of 2.8 million shares at mid-day is not anywhere close to representing unusual trading volume in the stock.  The 52-week trading range is $14.06 to $20.24 and average volume per day is more than 5.3 million shares.

We’d love to have a great flag here, but unfortunately the after-review does not scream anything more than what is noted.

JON C. OGG

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