Zynga has been in the $2.50 to $4 range for over a year now and I do not expect that to change. With Zynga trading in the upper end of that range and with revenues expected to be down over 50% year over year, I am expecting a moderate sell-off after earnings. Going into earnings this week, I am watching the weekly October 25th puts at the $4 Strike trading for 0.38, and the $3.50 Strike Calls trading for 0.30. I plan to take a position near Tuesday’s close, as they report after the close Thursday. By buying the $4 Strike Puts, you would break even if Zynga closed at $3.62 on Friday.
Suna interesant. Eu am fost si mai agresiv, cu PUT 3.5 care expira vineri. Si ma gandesc sa mai adaug si niste put-uri de 4, cum spune si baiatul asta (care era un suporter serios al Zynga la inceputul anului, dar s-a razgandit cand au anuntat ca nu mai intra pe piata de cazino-uri online).