Market Overview

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

Share:
Related ZNGA
Lightning Round: Jim Cramer Weighs In On Groupon, First Solar, Roku, And More
Wedbush Analyst Breaks Down Zynga's MAUs, Peak Games' Card Games Acquisition

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
Jan 2018Consumer Edge ResearchInitiates Coverage OnOverweight
Sep 2017Goldman SachsInitiates Coverage OnNeutral
Aug 2017Canaccord GenuityMaintainsHold

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!