Piper Jaffray analyst Michael Olson says October NPD video game software declined 3% year-over-year, with Microsoft's (MSFT) Halo 5 being the top title by a "wide margin." Enough next generation hardware has now been sold to drive sustainable software growth on a quarterly basis, Olson tells investors in a research note. He maintains Overweight ratings on Activision Blizzard (ATVI), Electronic Arts (EA), GameStop (GME) and Take-Two (TTWO).
Bullish option flow detected in GameStop with 44,913 calls trading, 1.9x expected, and implied vol increasing over 3 points to 96.82%. 4/26 weekly 11.5 calls and May-24 12 calls are the most active options, with total volume in those strikes near 7,700 contracts. The Put/Call Ratio is 0.10. Earnings are expected on June 5th.
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