Merriman Capital Highlights A Long Call Spread Option In Zynga
SAN FRANCISCO, Aug. 23, 2012 /PRNewswire/ -- Merriman Capital, Inc., a wholly owned subsidiary of Merriman Holdings, Inc. (OTCQX: MERR), today announced its head of derivatives, Joe Minton, sees opportunity by purchasing the January 2013 long call spread option in Zynga Inc. (NASDAQ: ZNGA), the world's leading provider of social game services with more than 290 million monthly active users playing its games.
The Merriman team recommends institutional investors gain an upside exposure in Zynga, while limiting risk. They may purchase the March 2013 $3.00/ $6.00 long call spread for $0.66 – ZNGA is currently trading at $3.26.
Purchasing the spread minimizes the amount of cash an investor risks compared to purchasing the stock or calls outright. This long call spread takes advantage of upside skew in the option pricing by selling the further out of the money call option to offset the price of the purchased at the money call option. The position could result in a potential profit of approximately $2.34 if ZNGA closes above $6.00 by March 16, 2013.About Merriman Capital, Inc. Merriman Capital, Inc. is an investment banking firm providing equity and options execution services, market making, and differentiated research for high growth companies. The firm also provides capital raising, advisory, and M&A services. Merriman Capital, Inc. is a wholly owned subsidiary of Merriman Holdings, Inc. (OTCQX: MERR) and is the leading investment banking firm for OTCQX companies. For more information, please go to http://www.merrimanco.com/. Merriman Capital, Inc. is a registered broker-dealer and member of The Financial Industry Regulatory Authority (FINRA) http://www.finra.org/ and the Securities Investor Protection Corporation (SIPC) http://www.sipc.org/. Note to Investors This press release contains certain forward-looking statements based on our current expectations, forecasts and assumptions that involve risks and uncertainties. This release does not constitute an offer to sell or a solicitation of offers to buy any securities of the Company. Forward-looking statements in this release are based on information available to us as of the date hereof. Our actual results may differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with our business, which include the risk factors disclosed in our Form 10-K/A filed on April 30, 2012 and the Form 10-Q filed on May 15, 2012 . Forward-looking statements include statements regarding our expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," and "would" or similar words. We assume no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise. The Form 10-K/A filed on April 30, 2012 and the Form 10-Q filed on May 15, 2012, together with this press release and the financial information contained herein, are available on our website, www.merrimanco.com. Please click on "Investor Relations." This press release is for information purposes only and should not be regarded as an offer to sell or solicitation to buy the securities or other instruments of the company mentioned.
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