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Call options are in heavy rotation on Zynga Inc (NASDAQ:ZNGA), with volume rising to more than double the expected intraday level. Roughly 44,000 calls have crossed the tape so far, easily outstripping the 7,206 puts that have traded.
The most active strike is ZNGA's November 4 call, where 35,179 contracts have been exchanged. Open interest at this front-month call numbers only 20,984 contracts, so it looks as though new positions are being opened here today. With 93% of these calls trading closer to the ask price, and implied volatility on the option jumping 16.5 percentage points, it seems safe to say that traders are buying to open new bullish bets on Zynga.
Shares of the social gaming stock are off 1.9% this afternoon to trade at $3.66, despite some positive news in its courtroom dispute with Mattel, Inc. (NASDAQ:MAT). Despite today's pullback, Zynga Inc (NASDAQ:ZNGA) remains above its 10-day, 20-day, and 40-day moving averages -- all of which have played the role of support in recent months. Year-to-date, the stock sports a market-beating gain of more than 55%.