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Facebook Inc (NASDAQ:FB) has put in a stellar performance of late, with the shares up 23% from their late April low of $54.66. In fact, this week alone, the stock has tacked on more than 4% to trade at $67.25. Although the brokerage bunch has taken note of this upward momentum, it has not been enough to satisfy one set of option traders today, who are eyeing a move above the $68 mark by tomorrow's close.
Specifically, the most active FB option today is the weekly 6/27 68-strike call, where 16,867 contracts have changed hands. The majority of these have traded at the ask price, IV is trending higher, and volume outstrips open interest -- all signs of buy-to-open activity. The volume-weighted average price (VWAP) for the calls is $0.33, making breakeven at tomorrow's close $68.33 (strike plus VWAP). Profit will accrue with each additional step north of here, while risk is capped at the initial premium paid, should Facebook Inc (NASDAQ:FB) settle south of the strike at week's end.