ERTS update

A few points reevaluating my EA trade. This is a position trade in anticipation of an event. So here are some more thoughts

1. EA made a 3.5% jump today yesterday at slightly above average volume. This was, I guess in response to the news that EA is going to acquire DICE the maker of the Battlefield 1942 series (which by the way is a great game) . The stock is just hovering around the 200-day MA and closed barely above it before dropping back under it again today.
2. Reevaluating the stock after the put dropped to 0.8 today I realized that the reasons I bought the put still hold. There's intense competition coming from Halo2, GTA3, Metal Gear Solid3 and Half-Life2, which I believe will be the blockbuster games for the end of year. These same games will eat into EA revenues despite the fact that EA dropped the price on some of it's games. I still believe EA will miss on the holiday sales number when it reports its next earnings.
   
3. In the past year, there have been around 5 high volume drops in the stock price but none of them broke the 200-day average. The stock has recovered all those times. This time, however, it looks like the 200-day MA is providing stiff resistance looking at the 1 year chart.