Activision (ATVI) is a great cash gushing gaming business.

The company's most popular games include military-operations franchise Call of Duty, fantasy role-playing game World of Warcraft, and puzzle matching game Candy Crush Saga.

Today's bond opportunity is a great trade whether the Microsoft Acquisition closes or not.

The company has had bad press with sexual harassment claims against the CEO causing the stock price to drop 40%. This set up the company to be an acquisition target which has occurred a lot sooner than the markets expected.

Right now you can purchase Activision Blizzard 2.5% bond due September 15, 2050 (CUSIP No. 00507VAQ2) up to $925 per bond. At a current price of around $890 you will receive a yield of 2.8% ($25 bond coupon / $890 purchase price) and get paid at par ($1000 per bond at maturity). (With the strength of the business and current low interest rate environment it is likely the bond will return to par much soon giving big annualized gains. For example if you buy at $890 and you can sell the bond for par in 1 year you will have a annualize gain of 15% including the $25 coupon payment.

The stock market likes the MSFT acquisition news and the bond prices will likely follow soon. You do not want to miss the chance to park some low risk traditional funds in a safe bond earning 2.8% and a potential large capital gain regardless of where the stock market goes this year.

Divider provided by barge

Disclosure: I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. The information provided should NOT be considered advice. The topics discussed are risky and have the potential to lose a substantial amount. I am not an investment professional and therefore do not offer individual financial advice. Please do your own research before investing.

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