Zynga Could Move 14%, But 'Be Careful' Using Options Data, Expert Says
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.
“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
|Apr 2017||Pacific Crest||Reinstates||Sector Weight|
|Dec 2016||Mizuho||Initiates Coverage On||Buy|
|Aug 2016||Cowen & Co.||Upgrades||Market Perform||Outperform|
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