Most Active Weekly Options: Facebook Inc (FB)

Bullish bettors expect Facebook Inc to topple $75 by week's end

Digital Content Group
Nov 24, 2014 at 1:59 PM
facebook twitter linkedin

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 call volume nearly triples put volume.

Most Active Weekly Options Table

Facebook Inc has gained a modest 0.6% this afternoon to trade at $74.18, and options traders have set their sights on additional upside through the end of the week. Specifically, the social networking stock's most active option is the weekly 11/28 75-strike call, where 8,261 contracts are on the tape.

The majority of the contracts have changed hands at the ask price, implied volatility (IV) has edged higher -- even though FB's 30-day at-the-money IV touched a 52-week low earlier -- and volume outstrips open interest, collectively implying buy-to-open activity. In other words, the buyers anticipate the shares will topple $75 by Friday's close, when the series expires.

While the underlying need only gain about 1% to hit the aforementioned strike, Facebook Inc (NASDAQ:FB) could face a potentially rough road ahead. The $75 area has acted as resistance this month, reinforced by the more than 7,500 contracts in call open interest at the corresponding strike in the 11/28 series. What's more, the shares are now staring up at their 100-day moving average (at $74.47), which recently served as support, but could now reverse roles to limit additional upside.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners