Zynga (ZNGA) loses a dime to $5.34 on the day and a 5000-lot of Jan 4 puts is sold on the San Francisco social networking company at 45 cents, to open. The contract is 25.1 percent OTM with a -.21 delta. If sold at 45 cents, the breakeven of the $4 put at expiration is at $3.55 and 33.5 percent below current levels. Today’s put writer is probably a willing buyer of ZNGA for $4 per share. The stock’s all-time (closing) low is $4.98 on 6/12/2012.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.