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UCBrownsfan · 02-17-2013, 01:56 PM

My position right now is buying ZNGA, and selling the call.

ZNGA right now is at $3.20
The Jan 15 call, at $5 / share is at $.83

That means an immediate return of 25% on the stock with room for growth in the next 2 years of an extra 56%. With cash on hand of $1.67 / share, unless something goes seriously wrong the floor is $2.50 / share, and the ceiling is $5.83 / share... not a bad position for $3.20.

02-17-2013, 01:56 PM	#120
UCBrownsfan Member Join Date: Dec 2010 Posts: 160	Re: Anyone want to talk stocks and retirement? My position right now is buying ZNGA, and selling the call. ZNGA right now is at $3.20 The Jan 15 call, at $5 / share is at $.83 That means an immediate return of 25% on the stock with room for growth in the next 2 years of an extra 56%. With cash on hand of $1.67 / share, unless something goes seriously wrong the floor is $2.50 / share, and the ceiling is $5.83 / share... not a bad position for $3.20.