Ahead of F8 Conference, Facebook, Inc. (FB) Puts Pick Up

Facebook Inc (FB) will host its annual developers conference today

by

Published on Mar 25, 2015 at 10:51 AM
Updated on Apr 20, 2015 at 5:32 PM

Facebook Inc (NASDAQ:FB) will hold its annual F8 developers conference today and tomorrow, with CEO Mark Zuckerberg kicking off the event with a keynote address at 1 p.m. ET. Ahead of the speech, shares of FB are sitting 0.9% lower at $84.58. As such, put volume has accelerated to nearly double the expected intraday rate.

Weekly options are in high demand, as nine of the 10 most active strikes belong to either the weekly 3/27 or 4/2 series of options. Seeing the most clear-cut buy-to-open activity is the weekly 4/2 70-strike put, as speculators roll the dice on -- or hedge against -- FB breaching the round-number $70 level by next Thursday's close, when the series expires.

That these may be protective puts is a real possibility, considering the stock would need to plummet more than 17% in just over a week for the contract to expire in the money. What's more, Facebook Inc (NASDAQ:FB) yesterday touched a record high of $86.07 -- amid reports the social network may begin hosting news content -- and hasn't traded south of $70 since July. In fact, delta on the put is a tiny negative 0.006, signifying a less than 1% probability the option will be in the money at expiration.

Daily Chart of FB since July 2014


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Nevada Discovery That Could Jeopardize Chinese Dominance
Click to continue to advertiser's site.
UNH Stock Pops on Accelerated Payment Promise
Analysts are very bullish on UnitedHealth stock
Extra Space Storage Stock Wavers After Downgrade
Raymond James downgraded to "underperform" from "market perform"
The Top Lithium Play of 2020
Click to continue to advertiser's site.