EA tends to outperform in January, historically
Among the 25 best stocks to own in January is video game name Electronic Arts Inc. (NASDAQ:EA). Per Schaeffer’s Senior Quantitative Analyst Rocky White’s list of best S&P 500 Index (SPX) equities that tend to outperform this month, historically, EA averaged a 6% gain in seven out of the last 10 years.
Though Electronic Arts stock is fractionally lower this afternoon, last seen trading at $135.63, the $135 level that moved in as a layer of support in late-November once again stepped up to thwart today’s small dip. At its current perch, a comparable to previous years would put EA at its highest level since November 2021 and add to its 10.2% year-over-year lead
An unwinding of pessimism in the options pits could provide the equity with some additional tailwinds. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock’s 10-day put/call volume ratio of 1.59 ranks higher than 86% of readings from the past year. Echoing this, its Schaeffer’s put/call open interest ratio (SOIR) of 1.15 stands above 83% of annual readings.
For those looking to bet on the pop, doing so with options looks to be an affordable route. Electronic Arts stock’s Schaeffer’s Volatility Index (SVI) reading of 17% stands in the low 10th percentile of its 12-month range — a signal that options traders are pricing in less volatility at the moment.