AAL

Facebook, Inc. (FB) Bulls Roll the Dice on an Earnings Win

Facebook Inc (FB) announced a new Super Bowl ad strategy today

Digital Content Group
Jan 28, 2015 at 1:31 PM
facebook X logo linkedin


Facebook Inc (NASDAQ:FB) is up 2.1% this afternoon at $77.38, ahead of this evening's highly anticipated earnings report. Options are flying off the shelves, too, at a rate more than twice the intraday norm.

At least one group of traders is expecting a post-earnings lift for FB. Specifically, buy-to-open activity has been detected at the weekly 1/30 79-strike call. In other words, the buyers expect the social media stock to topple $79 by this Friday's close, when the weekly series expires. FB hasn't settled north of here since Dec. 30, though; as such, delta on the out-of-the-money call is just 0.43, or 43%.

On the sentiment front, calls have been the options of choice in recent weeks. FB's 10-day call/put volume ratio across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) checks in at 2.53 -- higher than 70% of all other readings from the last year.

This optimism is understandable, given FB's longer-term technical tenacity. On a year-over-year basis, the shares have tacked on about 45%. Lastly, in today's news, Facebook Inc (NASDAQ:FB) announced it will sell targeted ads during this Sunday's Super Bowl, focused on what people are discussing in real time.

 

Same-Day Trading Power: +227% YTD and Counting  — Get in for $10!

We're celebrating 44 years of helping traders win, and you can now tap into one of our most explosive services — Dynamite Day Trading Signals — for just $10.

This service was built for one thing: capturing intraday gains with precision. 

Access two highly-vetted options trades each week -  Complete with defined entries, exits, and a clear plan for same-day profits.

👉 Click Here to Learn More and Position Yourself to Take Action When the Next Alert Hits.