I have been following this company for well over 1 year, and have never seen an option purchase anywhere near this size - nearly 3% of the outstanding common stock. The options expire 1 week from this coming Friday. Anyone who does a thorough job researching Z will discover they have a number of things in the works. Don't forget about the 'CTO' filed by Z with the SEC a month or so ago. My best guess is that an institution did their due diligence and either stumbled on or surmise that something big is coming, and may even have a good idea as to when it will come(something big is very difficult to hide from ears trained to hear such things) . By acquiring options rather than common shares, if what they know (or think they know) comes to pass, their return on investment will be a large multiple of what it would have been had they acquired the stock, which they may have planned to do anyway. Don't be surprised when gig news hits in the next few days or weeks. This stock often moves up or down, only for us to discover in hindsight that someone had unearthed the information, and made a bet on it. It happens all the time.
Bad sign is Put or Call they are controlling if some one buy too much call the they will make stock PUT
only way they are making money, after expired and they raise up, that happen when they have too much option market, that why ZNGA can not pass 4.00 until all options expired., I been see this game for many years.
if I am not make mistake next Friday after option expired ZNGA will shooting up approx 0.20 so I will watch it, with 4 days trading next week they may put ZGNA to 3.50 before is raise up
You're missing the point. First, someone did in fact write the calls - many investors would be happy to accept a substantial premium over the current stock price, expecting to pocket the cash a few weeks hence, and if the stock gets taken from them (at a much higher price), they are willing to accept that risk in exchange for a nice cash premium at the time they wrote the calls(of which the strike price was substantially higher than the current stock price, with just a few weeks before expiration)...Now think about this: Why would an investor, likely a well-informed institutional investor, buy a HUGE call option contract representing 23million shs of common stock, with only a few weeks before expiration, and with the need for the stock to jump at least 10% in price within those few weeks just to break-even, or lose the entire investment? One need not be a rocket scientist to figure this out. The investor is expecting news of some kind in a matter of just days - news that he expects will drive the stock substantially higher.
The larger position on that Call was initiated by some in the know. Then you have small retail that jumped on the same movement with smaller positions. Remember the herd mentality. But yes the majority of the buying had started after the CC under the radar screen while investors were agonizing over the drop in share price after the QTR report. They were very clever not to arouse suspicion until others got on board and the amount went over 200K. They could be bearing down on the stock too a little at a time as the price dropped.