Stock / Symbol: ZYNGA Inc / ZNGA
Option Strategy: strangle
Trade entry date: Feb 13
Trade exit date: Feb 14
Price at trade entry: $13.52
Price at trade exit: $14.45
Update: We got filled at $3.35 at 2:56pm EST for a quick 9.8% gain in 24 hours!
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I got filled in this trade late and held through EA, but significant loss with the call. If you could, I wonder why we used PUT at 13 not at 14 instead, which would offset loss with calls. Thanks
When we put the trade on, ZNGA was trading right around $13.50, which is why we strangled the trade with out of the money options (a long 14 call and long 13 put). Had ZNGA been trading at 13, we’d have used a straddle, buying both the 13 strike calls/puts. Had ZNGA been trading at 14, we’d have used a straddle, buying both the 14 strike calls/puts.