What's behind call activity in Zynga

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SymbolPriceChange
ZNGA2.4814+0.0114

Shares of Zynga have been climbing in the last couple of weeks, but today's option activity in the name isn't overly bullish.

optionMONSTER systems show that a trader bought 4,911 March 3 calls for $0.63 against open interest of more than 39,000. At the same time, he or she sold 4,911 September 4 calls for the bid price of $0.53 in volume above the open interest of 625, so it is a new position.

This appears to be the roll of a short-call position as the March contracts have gone in the money . If so, it would almost certainly have been done against long stock as a covered call position. (See our Education section)

ZNGA is up again today, adding 4.66 percent to $3.59. Shares of the struggling social-gaming company was down at support at $2.40 in late January and broke up through $3 just in the middle of last week. The stock was last above $4 last in late July before it gapped lower on earnings.

More than 43,000 ZNGA options have traded already this morning.

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