What's behind huge Zynga call sale
Chris McKhann | [email protected]
optionMONSTER systems show that more than 50,000 December 3.50 calls have traded, led by a huge block of 47,015 sold for the bid price of $0.21. The previous open interest was just below 35,000, so this is a new position.
The call selling sees little to no upside in ZNGA in coming weeks. Our scanners did not find any corresponding trading in the underlying shares today, but given how close the strike is to the stock price, these options were very likely sold against an existing long stock position in a covered-call position. (See our Education section)
ZNGA is up 0.87 percent to $3.46 in afternoon trading. The social-game company was briefly above $4 on Oct. 27 after reporting earnings but was below $3 heading into September.