$TTWO · Schwab Network · 2026-11-09

First, TikTok Interactive is scheduled to announce its quarterly results after the market closes today. The video game maker is expected to report adjusted earnings of 90 cents per share. Revenue is expected to exceed $1.6 billion.

The earnings will be released before the highly anticipated game "GTA 6". It is scheduled for release on November 19th. Yes, this is a long-awaited continuation of this company's outstanding series.

We can see TikTok down about 8.2% this year in purple here, and it is very close to its sector, the telecommunications sector (XLC ETF), but underperforming the S&P index, which has risen about 8% this year.

TikTok comes in at the top of the group, but it still underperforms the market overall.

As you know, these things take time. You know they have a history of making big, complex games. It takes as much time as it needs. I think our producer said it's been 15 years since the last game was released.

So, obviously this is a very key part of what will happen to this company in the future.

So, we can now see here, looking at our specific annual chart, the old peaks at 265.94. You can link the closing price there to the subsequent closing price that represents a lower level.

This is roughly where we recently peaked as we approached this earnings event.

So, there is a long-term downtrend line in operation, but you could also say that we have another, sharper and clearer uptrend line, starting from our 52-week lows, just below the 184 level.

Therefore, there is a contradiction here between our two directions.

The peaks, the recent peaks here, at 219 and 225, stand out as points to be surpassed upwards. Prominent lows, a very small gap here near 197, and a recurring floor here at our Green Line near 189, which was broken during the day, but we didn't close below it, so that was a fairly positive sign, a mixed sign, but it could have been worse.

The 183.86 level was our lowest point in 52 weeks.

Moving forward in the chart, and looking at the moving averages, we have the 251-day exponential moving average, which represents one year up, and is our orange line, reaching the 221 level, which is our longer-term and most important average that has not yet been surpassed.

We have crossed our three short-term moving averages: the dark blue line for 5 days, the turquoise line for 21 days representing a month, and the golden line for 63 days representing a quarter.

We have broken through all those averages in very rapid succession after hitting the bottom at the 52-week levels.

The faster moving averages started to cross over their slower counterparts here. Normally, this might be a positive indicator of a change in trend, but we are approaching the earnings announcement.

Therefore, profits can change everything very quickly. This can cause a very strong fundamental change in the stock's prospects. Therefore, these technical changes here are not as important as they would have been in other circumstances, because the earnings event is looming.

Despite this, the Relative Strength Index (RSI) is improving. The Relative Strength Index (RSI) is often seen to stagnate as we approach an earnings event or other known risk situation.

But in this case, the relative strength index improved. We are above the midline at the 50 level. We are in an uptrend, but we now see that we have more work to do in terms of breaking through our trend lines.

You would like to see a breakout above the trend line, a breakout above our latest moving average, and for the RSI to continue to make new relative highs with the price. That would be a sure bullish setup.

When we use the volume profile analysis, we find the blue bar chart on the right side of the screen. This shows us where the trading activity took place, while the trading volume analysis below tells us when it took place.

When we combine them, we can see the control point at 212.50, which is the most intense trading area of all. Recent surges in trading volume also show that this is a key area buyers are keen to hold.

Just last week, when the market was turbulent and most major indices were down, Take-Two actually rose by 13%, probably before the release of GTA 6 on the 19th.

So, you have the earnings report tonight after the close. And you have that event on the nineteenth. These could be key triggers. According to Sensor Tower, there are more than 7.7 million pre-orders for GTA 6 so far.

This equates to a massive sum of $751 million even before the game's release.

So, there are two events that could move the markets. The stock is still low so far this year. It has witnessed a decline.

So, if you think the stock will rise after earnings, I looked at a strategy, but I didn't use earnings-only trading. I have extended the period for another week. I went to the November 20th monthly session.

So, I have 11 days at this center. I will take advantage of the earnings report tonight after the close, and then I will also take advantage of the release of "GTA" on the nineteenth.

But this is definitely an upward trend. You need to move upwards. We have chosen the November 20th monthly cycle. We will buy a "Call" call option at an execution price of 215, which is slightly within the range.

This is the upside of this strategy. We buy a call option at 215, and in return, to offset some of the cost, we will sell the call option at an execution price of 240. So, it is a bullish vertical call option strategy with a $25 spread upwards.

You will pay approximately $9 as a discount here. This will be your risk, $900 per team. This makes your breakeven point, because you bought a call option slightly within the range, rise to 224 towards the top in this trade.

This is only slightly more than 3% higher than the current share price.

Now, the pricing in the options market indicates a daily movement of approximately $11 more or less. This means about 5% in either direction. Therefore, this break-even point lies well within one standard deviation of the move priced by the options market.

Therefore, it is a bullish outlook where you risk $900 to make $1600 if the stock breaks through the 240 barrier.

Now, why did you choose the execution price of 240 to sell versus the long buy option at 215? Well, the options market for the November 20th cycle, which ends in 11 days, is expecting a move of plus or minus $27 or $28.

Therefore, the execution price of 240 is in line with what the options market is pricing. So, using the calculations on the platform here, we definitely need an upward move, but it remains within the range of one standard deviation that the market is pricing in here, Diane.