I like Zynga here as a speculative buy.  I’ve taken a long position and here is why.

  • With the recent CEO hire, a window of potentially positive surprises opens up as they lay out new initiatives (possibly virtual reality gaming?)
  • This lines up well with a technical setup allow investors to own for a potential double while only risking downside to about 2.10.

znga

Currently, you have to have a stomach for risk, because you could lose 15%.  Another point worth noting is to catch this move, you’re going to probably have to hold through an earnings announcement.

If you want to remove risk, you can just wait for either the downtrend break and/or earnings to pass or another opportunity closer to the 2.10 area.

The Levels:

Upside Targets: 3.00-3.10, 4.50, 5.89

Downside All or Nothing Zone: 2.10ish

This is an explosive technical setup with plenty of risk involved, but it might just be worth it.  You just have to understand your risk tolerance to play this

Trade ’em well!