Market Overview

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

Share:

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
Sep 2019AssumesNeutral
Aug 2019MaintainsOutperform
Aug 2019MaintainsOutperform

View More Analyst Ratings for ZNGA
View the Latest Analyst Ratings

Posted-In: Analyst Color Previews Options Exclusives Markets Analyst Ratings Trading Ideas Interview

 

Related Articles (ZNGA)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
IINDoughertyAssumes34.0
PNRJefferiesInitiates Coverage On
YYUBSUpgrades
ROKUOppenheimerMaintains155.0
IPHIBank of AmericaMaintains80.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

The Orbitz-Expedia Merger Is Igniting Priceline

Tesla's Q4 Results Were 'Nothing New' To Investors, Experts Say