Schaeffer's Options Center
Sponsored by:
Schaeffer's Daily Option Blog

Facebook Inc (FB) Traders Gamble On More Gains

Facebook Inc's weekly 6/27 68-strike call is being bought to open today

by 6/26/2014 2:53 PM
Stocks quoted in this article:

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.


permalink

Featured Brokers
ADVERTISEMENT
Unusual Option Volume
Option Flow
ADVERTISEMENT
ADVERTISEMENT
Most Active Stocks
Most Active Option Strikes
Largest Open Interest

Partner Center

© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: service@sir-inc.com

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.