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

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

by Digital Content Group

Published on Mar 25, 2015 at 10:51 AM
Updated on Jun 24, 2020 at 10:16 AM

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


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