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Option Clips: Facebook Inc (FB), AT&T Inc., and Google Inc

Reviewing notable options activity on Facebook Inc, AT&T Inc., and Google Inc

by 1/9/2014 1:05 PM
Stocks quoted in this article:

Three equities drawing attention from options traders today are social media maven Facebook Inc (NASDAQ:FB), telecom concern AT&T Inc. (NYSE:T), and search engine giant Google Inc (NASDAQ:GOOG). Here's a look at how traders have been aligning their speculative bets today.

  • Facebook Inc (NASDAQ:FB) ran to another record high of $58.96 today, before easing back to the $57.80 level. The technical milestone has prompted option traders to target the January 2014 60-strike call, where nearly 10,400 contracts have changed hands, mostly at the ask price. Implied volatility (IV) is on the rise, hinting at buy-to-open activity.

  • Shares of AT&T Inc. (NYSE:T) are in retreat mode, down 1.7% at last check to linger near $33.66, after earlier touching a new annual low of $31.99. As such, put volume has soared to more than three times the average intraday pace. One speculator is forecasting additional struggles down the road, and scooped up 4,470 March 32 puts. This large block of out-of-the-money puts crossed the tape closer to the ask price for $0.32. IV ticked higher at the transaction, and Trade-Alert marked this batch of bearish bets as being opened.

  • Google Inc (NASDAQ:GOOG) is also in the red this afternoon, off 1.2% to trade at $1,127.62. In spite of this, call volume is running at a 10% mark-up to levels typically seen at this point in the day. The most sought-after position is the weekly 1/10 1,140-strike call, which has seen 2,189 positions change hands. A healthy portion of these have done so on the ask side, IV is up, and volume outstrips open interest, indicating the initiation of new bullish positions. Delta for the call is docked at 0.19, or 19%, suggesting a roughly 1-in-5 chance of an in-the-money finish at tomorrow's close.

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