Eleventh-Hour Speculators Roll the Dice On Facebook Inc (FB)

Facebook Inc's weekly 11/28 series was in focus on Wednesday

Nov 28, 2014 at 10:09 AM
facebook twitter linkedin


Weekly option traders have targeted Facebook Inc (NASDAQ:FB) this week, and Wednesday's session was no exception. In fact, five of FB's 10 most active options expire at today's 1:00 p.m. ET close, and accounted for nearly one-fifth of the total daily volume.

Most active was FB's weekly 11/28 77-strike call, where one speculator in particular bought to open a multi-exchange sweep of 2,191 contracts for $0.77 apiece. The initial net debit of $168,707 (number of contracts * premium paid * 100 shares per contract) is the most the speculator stands to lose, should the stock settle south of $77 at the end of today's abbreviated session. Gains, meanwhile, are theoretically unlimited north of breakeven at $77.77 (strike plus premium paid).

Also receiving notable attention was FB's weekly 11/28 78-strike call, where 15,604 contracts crossed the tape. This activity was split on the bid and the ask sides, and a hefty portion of the volume translated into open interest over the Thanksgiving break -- indicating positions were both sold and bought to open, respectively. This theory is echoed by data from the International Securities Exchange (ISE).

By writing to open the calls, speculators expect FB to finish today's session south of the $78 mark, while those buying to open the calls are betting the stock will rally past this mark. At last check, Facebook Inc (NASDAQ:FB) has surrendered 0.4% this morning to trade at $77.29. Year-to-date, though, the stock is still enjoying an impressive 41.4% lead.

 

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! 

 

300x250 - Banner 3 - v1