Facebook Call Options Pop Ahead of Cryptocurrency Reveal

FB stock has been red-hot in recent weeks

Jun 17, 2019 at 2:08 PM
facebook twitter linkedin


Facebook, Inc. (NASDAQ:FB) stock is red-hot today, as buzz builds around the company's cryptocurrency, expected to be launched as early as tomorrow, June 18. Ahead of the highly anticipated Project Libra reveal, FB stock is trading up 3.2% at $187.07, set for its highest close since May 10.

FB options traders are getting in on the action, with around 291,000 calls and 94,000 puts on the tape so far, two times the expected intraday amount. Standard June options are popular, with at- and out-of-the-money call strikes from the front-month series the four most actively traded Facebook options this afternoon.

The June 190 call has seen the bulk of the action, with 29,311 contracts traded. Trade-Alert suggests at least some of these calls are being bought to open for a volume-weighted average price of $1.50. In this case, breakeven for the call buyers at the close this Friday, June 21, is $191.50 (strike plus premium paid).

The last time the FAANG stock finished a week above here was May 3, but that's not to say it hasn't made inroads in recent sessions. Since taking a sharp bounce off its 200-day moving average in early June, FB shares have surged more than 16%. Plus, the equity has finished just two sessions lower in June -- a 7.5% plunge on June 3, and a 1.7% drop on June 12.

facebook stock price chart on june 17

 

 

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! 

 


 


 
Special Offers from Schaeffer's Trading Partners