BUY, SELL, HOLD (2)

Options Bulls, Analysts Blast Zynga Stock Post-Earnings

ZNGA hit an eight-year high out of the gate this morning

Deputy Editor
Aug 6, 2020 at 10:15 AM
facebook X logo linkedin


The shares of digital game maker Zynga Inc (NASDAQ:ZNGA) are up 2.1% to trade at $10.27 and hit a new eight-year high of $10.769 out of the gate this morning. This comes after the company's second-quarter earnings and revenue topped Wall Street forecasts. Zynga also boosted its full-year bookings forecast, and has received no less than five price-target hikes from analysts this morning. The highest comes from Piper Sandler, which raised its price target to $13 from $11.

The bull notes are surprising considering the baked in optimism toward ZNGA already.  Coming into today, 14 of the 18 in coverage sported a "strong buy." Plus, the 12-month consensus target price of $11.59 is an 9.2% premium to current levels. 

Zynga stock now boasts an impressive 68.6% year-to-date lead. Meanwhile, support has emerged at its 50-day moving average, a trendline that ZNGA has managed to capture pullbacks in the last six months.

Today's option pits are full of bullish activity. In the first hour of trading, over 27,000 calls have crossed the tape so far -- six times the intraday average, with volume pacing in the highest percentile of annual readings. The two most popular are the weekly 8/7 10- and 10.50-strike calls.

It's worth nothing that short interest is down significantly, off 21.5% in the last two reporting periods. Yet the 50.18 million shares sold short still represent a solid 5.4% of Zynga stock's available float.

 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.