ZDGE Long Call Strategy
ZDGE (Zedge, Inc.), in the Communication Services sector, (Internet Content & Information industry), listed on AMEX.
Zedge, Inc. operates a digital publishing and content platform worldwide. Its platform enables consumers to personalize their mobile devices with ringtones, home screen app icons, wallpapers, widgets, and notification sounds. The company was incorporated in 2008 and is based in New York, New York.
ZDGE (Zedge, Inc.) trades in the Communication Services sector, specifically Internet Content & Information, with a market capitalization of approximately $36.5M, a beta of 1.31 versus the broader market, a 52-week range of 2.12-4.89, average daily share volume of 68K, a public-listing history dating back to 2016, approximately 106 full-time employees. These structural characteristics shape how ZDGE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.31 indicates ZDGE has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. ZDGE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long call on ZDGE?
A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration.
Current ZDGE snapshot
As of May 15, 2026, spot at $2.87, ATM IV 98.20%, IV rank 18.88%, expected move 28.15%. The long call on ZDGE below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 34-day expiry.
Why this long call structure on ZDGE specifically: ZDGE IV at 98.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a ZDGE long call, with a market-implied 1-standard-deviation move of approximately 28.15% (roughly $0.81 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ZDGE expiries trade a higher absolute premium for lower per-day decay. Position sizing on ZDGE should anchor to the underlying notional of $2.87 per share and to the trader's directional view on ZDGE stock.
ZDGE long call setup
The ZDGE long call below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ZDGE near $2.87, the first option leg uses a $2.87 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ZDGE chain at a 34-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 ZDGE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.87 | N/A |
ZDGE long call risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium.
ZDGE long call payoff curve
Modeled P&L at expiration across a range of underlying prices for the long call on ZDGE. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
When traders use long call on ZDGE
Long calls on ZDGE express a bullish thesis with defined risk; traders use them ahead of ZDGE catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
ZDGE thesis for this long call
The market-implied 1-standard-deviation range for ZDGE extends from approximately $2.06 on the downside to $3.68 on the upside. A ZDGE long call expresses a directional view that the underlying closes above the strike plus premium at expiration, ideally with implied volatility holding or expanding to preserve extrinsic value through the hold period. Current ZDGE IV rank near 18.88% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on ZDGE at 98.20%. As a Communication Services name, ZDGE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ZDGE-specific events.
ZDGE long call positions are structurally bullish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. ZDGE positions also carry Communication Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ZDGE alongside the broader basket even when ZDGE-specific fundamentals are unchanged. Long-premium structures like a long call on ZDGE are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current ZDGE chain quotes before placing a trade.
Frequently asked questions
- What is a long call on ZDGE?
- A long call on ZDGE is the long call strategy applied to ZDGE (stock). The strategy is structurally bullish: A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration. With ZDGE stock trading near $2.87, the strikes shown on this page are snapped to the nearest listed ZDGE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ZDGE long call max profit and max loss calculated?
- Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium. For the ZDGE long call priced from the end-of-day chain at a 30-day expiry (ATM IV 98.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ZDGE long call?
- The breakeven for the ZDGE long call priced on this page is no defined breakeven on the modeled curve at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current ZDGE market-implied 1-standard-deviation expected move is approximately 28.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a long call on ZDGE?
- Long calls on ZDGE express a bullish thesis with defined risk; traders use them ahead of ZDGE catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
- How does current ZDGE implied volatility affect this long call?
- ZDGE ATM IV is at 98.20% with IV rank near 18.88%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.