International Game Technology (IGT) and Electronic Arts (ERTS) both release quarterly earnings this week. Is the video game trade still in tact?
Jeff Macke explains that game makers are making margins because the consoles have been out for a while. Subsequently, the volume of games being sold is higher.
He says the trade is getting long Activision (ATVI), Nintendo (NTDOY) and Microsoft (MSFT) going into this cycle.
Pete Najarian adds that options investors are buying November 17.5 calls in Take-Two Interactive (TTWO) which usually suggests they think the stock could go higher.
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Trader disclosure: On Oct 30, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (YHOO), (ATVI), (INTC); Najarian Owns (C); Najarian Owns (BHI) Options, (BIDU) Options, (HAL) Options, (UA) Options, (YHOO) Options, (SNDK) Options, (GOOG) Options; Finerman's Firm Owns (TSO), (WMT), (MSFT), (YHOO); Finerman's Firm And Finerman Own (C), (GS), (HD), (TGT); Finerman's Firm Is Short (MER) And Owns (MER) Puts; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Owns S&P 500 Puts
