OptionsHouse

Options Trading News

November 12, 2013  Tue 12:15 PM CT

ZNGA: SEE CHART GET CHAIN FIND STRATEGIES
A huge call sale is betting that any gains in Zynga will be limited.

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.
Share this article with your friends


OptionsHouse

Premium Services

Education & Strategy

The Movement of Delta

In our last column, we spoke about delta. You might remember that we discussed what delta was and what factors affected or changed delta. As you recall, we stated that three factors will have an effect on delta. They were movements of time, volatility, and underlying price. Today, we want to take a further look into the change of delta, this time focusing on change due to the movement in the underlying price. 

View more education articles »