Schaeffer's Options Center
Sponsored by:
Schaeffer's Daily Option Blog

Zynga Bulls Have High Hopes for the New Year

January-dated calls on ZNGA were a popular choice yesterday

by 11/29/2012 9:24 AM
Stocks quoted in this article:

Call trading popped on Zynga, Inc. (NASDAQ:ZNGA - 2.51) yesterday, as roughly 28,000 of these bullishly oriented options crossed the tape -- representing 1.93 times the stock's average daily volume. Meanwhile, only 4,259 puts changed hands, falling well short of ZNGA's typical daily put volume of more than 7,000 contracts.

Traders continue to show a strong preference for 2.50-strike calls on the gaming issue. In the January 2013 series, this strike was most active, with 16,335 contracts trading. About 90% of these crossed at the ask, suggesting a skew toward buying activity. Open interest at the January 2.50 call jumped overnight by 9,708 contracts, confirming the initiation of new bullish bets.

 ZNGA daily price chartThese options crossed the tape at a volume-weighted average price (VWAP) of $0.23, which means call buyers need ZNGA to rise above breakeven at $2.73 by the time January-dated options expire. Based on Wednesday's close at $2.51, the shares need to rally at least 8.8% over the next seven weeks.

ZNGA is down more than 73% year-to-date, but the stock is attempting a comeback on the charts. The shares closed Wednesday above their 50-day moving average, which previously hadn't been surmounted on a daily closing basis since April 2.


permalink

Featured Brokers
ADVERTISEMENT
Unusual Option Volume
Option Flow
ADVERTISEMENT
ADVERTISEMENT
Most Active Stocks
Most Active Option Strikes
Largest Open Interest

Partner Center

© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: service@sir-inc.com

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.