I sold Facebook put options when the price was near $26 a share and will look to sell $25 August put options if the price breaches under $25. Facebook has now traded lower for five days in a row, setting up a short-term technical "bounce" buy, based on historical price changes over a one-week period. For longer-term investors (basically anyone who is not a trader) it doesn't matter much. For Zynga investors, the worst of the storm has likely passed, or at least they are in the eye of the storm. After falling under $5 a share, nearly a 75% drop from trading highs as recently as March, Zynga appears to be nearing a bottom. ZNGA data by YCharts
Technically, Zynga appears poised to demonstrate a TDCombo 13 oversold indication this week. For those that don't study market timing techniques, TDCombo was developed by the legendary chart analyst Tom DeMark. TDCombo isn't a signal to buy, but does strongly suggest sellers may soon reach an exhaustion level in their liquidation of shares. I will look to sell August expiration date put options the end of this week. The nose-bleed-level premium at the $4 and $4.50 strike prices is increasingly looking attractive.