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


Related Stories

ZNGA

Call sale sees limit to upside in Zynga

September 14, 2016

A large trade is betting on a ceiling in shares of the social-game developer, which are up 9 percent in the last three months.

OptionsHouse

Premium Services

Education & Strategy

Using spreads to minimize risk

Last week we discussed the risk vs reward profile of a debit call spread in Wells Fargo (WFC). This week we will run thru the risk vs reward of selling a credit put spread to achieve the same exposure of that debit call spread.

View more education articles »