Pete Najarian said on CNBC's "Fast Money Halftime Report" that Zynga Inc ZNGA was trading at $10 a week ago and it dropped to $8 after it reported earnings. It managed to beat earnings, but it has cut the full-year forecast.
Options traders were buying the September $8 calls on Thursday and they switched to the December $9 calls on Friday. Around 20,000 contracts of the December $9 calls were traded for around 50 cents. Najarian decided to follow the trade and buy calls in Zynga.
We had a very large buyer of the next week's, $117-strike calls in Advanced Micro Devices, Inc. AMD, said Najarian. Around 14,000 contracts were traded for 70 to 80 cents. Najarian bought these calls as well.
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