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Zynga Could Move 14%, But 'Be Careful' Using Options Data, Expert Says

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Speaking to Benzinga, TD Ameritrade Chief Strategist JJ Kinahan said that investors have to “be careful” when looking at implied volatility on Zynga Inc (NASDAQ: ZNGA).

Because Zynga is a low-priced $2 stock, the implied volatility appears to be high. Kinahan noted the metric suggested a move of over 14 percent, up or down.

Related Link: New Data: Groupon Could Move 12% After Earnings

“The options prices are just so cheap and that’s why you have to be very careful about what you glean from an expected move.

"As a percentage of the price of the stock,” he added, the implied volatility looks “somewhat high.”

Heading into its earnings report on Thursday, Zynga Inc fell 12 cents, or 4.09 percent, to $2.69.

Kevin Riley and Brianna Valleskey contributed to this report

Latest Ratings for ZNGA

DateFirmActionFromTo
Aug 2016Cowen & Co.UpgradesMarket PerformOutperform
Feb 2016UBSMaintainsBuy
Feb 2016Credit SuisseMaintainsUnderperform

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