Activision Under Pressure

We identified using the VantagePoint software platform a potential bearish opportunity in Activision (ATVI) this morning. The predictive AI platform exhibited a bearish crossover, the neural index was in the “red” position indicated short term weakness, the predicted high and low were both lower than yesterday’s actual high and low. All of these factors point to potential bearishness. Using the at-the-money implied volatility, we targeted the 71 strike for the March 23rd weekly expiration options. The signal was to buy the 71/72.5 put spread for $0.27.