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Option bulls are targeting end-of-week upside for Facebook Inc
The 20 stocks listed in the table below are the names that have attracted the highest weekly options volume during the past 10 trading days. Those highlighted are new to the list since the last time the study was run, and data is courtesy of Schaeffer's Senior Quantitative Analyst Rocky White. One name of notable interest today is Facebook Inc (NASDAQ:FB), where short-term options traders are eyeing end-of-week gains.
Facebook Inc is off 0.3% this afternoon at $74.50. Nevertheless, call volume nearly triples put volume, and each of the 10 most active strikes are calls. What's more, the equity's 30-day at-the-money implied volatility (IV) has ticked 2% higher to 26.6%, suggesting short-term strikes are in high demand.
Diving into the details, the weekly 11/14 75-strike call -- which expires tomorrow night -- is FB's most popular option by a healthy margin. More than 13,000 contracts have been exchanged here -- the majority at the ask price, suggesting buyer-driven activity. Additionally, IV has added 6.8 percentage points, and data from the International Securities Exchange (ISE) confirms some newly bought bets. In short, these traders anticipate FB will muscle north of $75 by the close tomorrow.
Looking at the charts, while Facebook Inc (NASDAQ:FB) has spent the past couple of weeks around the strike, the equity has been unable to maintain a foothold there. Also, the stock is currently struggling to break north of its 20-day moving average, at $76.53. Although the trendline has historically served as a layer of support, it could now be reversing roles to act as resistance.