Options Bulls Charge Facebook, Inc. (FB)

Facebook Inc (FB) calls have been popular lately

Digital Content Group
Feb 18, 2015 at 12:51 PM
facebook twitter linkedin


Facebook Inc (NASDAQ:FB) call buyers have been active of late. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock has racked up a 50-day call/put volume ratio of 2.43, which is higher than 77% of all comparable readings from the past year.

Today is no different, as FB calls are trading at a 30% mark-up to the normal intraday pace. One contract seeing significant attention is the February 75 call, where buy-to-open activity has been detected. Traders purchasing this in-the-money call are hoping for FB to eclipse the at-expiration breakeven price of $76.45 (strike plus volume-weighted average price of $1.45) by the close on Friday, when the contracts cease trading.

On the Street, analysts are mostly bullish toward the shares. Of the 29 brokerage firms tracking FB, 23 rate it a "strong buy," with four giving it a "buy" rating, and the remaining two issuing "hold" recommendations. Also, the stock's consensus 12-month price target of $91.34 represents a 19.3% premium to current trading levels -- and sits in territory yet to be charted.

From a technical perspective, Facebook Inc (NASDAQ:FB) has been a laggard in 2015, with breakout attempts thwarted at the $78 level. Moreover, since touching an all-time high of $82.17 on Dec. 23, the equity has dropped nearly 7%. FB was last seen 1.3% higher at $76.56.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners