Image by Rebecca Williamson via FlickrElectronic Arts (ERTS) earnings reveal that 30% of the revenues were from the games downloaded by the consumers. It appears that the era of shipping games on disks is coming to an end.
The biggest retailer of video games on disks is GameStop (GME). GameStop may go the way of Blockbuster. Blockbuster is the once mighty chain of video rental stores that ended up declaring bankruptcy.
A trade to short sell GameStop has long passed all the screens of the ZYX Change Method, but we have been waiting for the trigger event. Now data from Electronic Arts provides the trigger. This trade is not for the amateur due to the heavy short interest in GameStop. The first key to success in this trade is to wait patiently for up spikes and scaling short sales into strength. The second key is to maintain a small core position and trade around the core position taking profits frequently. This methodology has worked well for other similar trades published on this blog.
