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February 14, 2013  Thu 9:27 AM CT

ZNGA: SEE CHART GET CHAIN FIND STRATEGIES
A long-term trade sees little upside for Zynga.

optionMONSTER systems show that one block of 8,151 January 4.50 calls was sold for the bid price of $0.44. The volume was more than twice the strike's open interest at the start of the session, clearly showing that this is a new position.

The calls could have been sold naked as a bet that the stock will stay below the $4.50 strike price in the coming year. But it is more like that they were traded against long shares in a covered call strategy, which would be bullish up to that level but would not see any gains above it. (See our Education section)

ZNGA is up 1.6 percent at $3.22 this morning, but those gains barely put a dent in the losses of the previous two days. The social-gaming company was at $3.75 on Monday, its highest price since gapping down with earnings results in July.
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Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

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