Shares of Electronic Arts (ERTS: sentiment, chart, options) are off nearly 5% in after-hours trading, adding to the stock's 2.52% decline during the regular session. Shortly after the close, ERTS reported that it expects fiscal 2009 net revenue and earnings per share to arrive below prior guidance due to lower than expected sales in North America and Europe. "The company is continuing to pursue cost saving initiatives including a reduction of its product portfolio for fiscal year 2010 with additional associated headcount reductions and facility consolidations," Electronic Arts said in a statement. The company does not plan to provide updated financial guidance before early February 2009.

Technically speaking, the shares have fallen on hard times, dropping more than 62% since January. Furthermore, ERTS has been pressured lower by its 10-week moving average since late August. Today, the shares broke back below potential short-term resistance in the 20 region, and pulled their 10-day and 20-day trendlines into a bearish cross. This latter technical formation could signal that ERTS has further to fall before selling pressure is exhausted.

This poor performance has not deterred bullish investors, however, as the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.28 indicates that calls more than triple puts among near-term options. Additionally, this ratio ranks at an annual low, meaning that options traders have not been more optimistic on ERTS at any other time during the past year. These bulls may be in for a rude awakening when the market opens tomorrow, given the company's poor earnings outlook.