Zynga yesterday regained some of the ground lost in Monday's steep selloff, and one trader apparently believes that the social-gaming company will hold current levels.
optionMONSTER systems detected the sale of 10,000 July 3 puts for the bid price of $0.24 yesterday. This is clearly a new position, as the volume was 3 times higher than the strike's open interest before the trade appeared.
The put selling is a bet that ZNGA will stay above $3 through expiration in mid-July. The trader is also showing the willingness, or possibly the desire , to buy shares if they are below that level for an effective price of $2.76. (See our Education section)
ZNGA rose 1.97 percent to $3.05 yesterday, but that did little to overcome the losses of the previous session, which saw the stock open at $3.41. Shares dipped to $2.87 on Monday but haven't been below $2.76 since Feb. 5.
More than 91,000 ZNGA options traded in total yesterday, compared to a daily average of 16,000 in the last month.
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