Option Update: Electronic Arts June volatility at 36 into EPS & TTWO offer


Electronic Arts (NASDAQ: ERTS) closed at $54.27 Monday.

ERTS is scheduled to report Q1 EPS after the market close today.

ERTS unsolicited $2 billion buyout offer for Take Two (NASDAQ: TTWO) expires on May 16.

ERTS May 55 straddle is priced at $3.55. ERTS June option implied volatility of 36 is near its 26-week average according to Track Data, suggesting non-directional price fluctuations after EPS & TTWO offer expiration.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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Last updated: February 13, 2012: 05:02 PM

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