Facebook Calls Remain Popular Amid Snap Accusations

Call traders are betting on more upside for FB

Digital Content Manager
Sep 23, 2019 at 12:15 PM
facebook X logo linkedin


Facebook Inc (NASDAQ:FB) was slammed earlier, after a Wall Street Journal report (subscription required) said rival Snap (SNAP) came out with a list of ways in which the social media giant attempted to sabotage it. According to those familiar with the matter, Snap's dossier, titled Project Voldemort, highlights undermining business practices committed by Facebook, including discouraging popular accounts from mentioning Snap on their pages. This new report comes amid an antitrust probe from the Federal Trade Commission (FTC) into several major tech names, including Facebook. 

Options traders are still showing a preference for calls over puts today, echoing a recent trend. In fact, Facebook is on Schaeffer's Senior Quantitative Analyst Rocky White's list of stocks that have attracted the highest weekly options volume during the past 10 days, with names highlighted in yellow new to the list. In the last two weeks, roughly 255,000 weekly calls have changed hands on FB, compared to about 145,500 weekly puts. 

Most Active Options Sept 23

Looking at data from the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows a notable portion of this activity was of the buy-to-open kind. The FAANG stock's 10-day call/put volume ratio of 2.63 ranks in the 90th annual percentile, showing calls have been bought to open relative to puts at a much quicker-than-usual clip.

Drilling down, the weekly 9/27 195-strike call saw a large amount of open interest added in the last two weeks. Data from Trade Alert suggests that a large number of these positions were bought to open, which means traders are expecting FB to break north of the $195 region by the time these contracts expire at the close this Friday, Sept. 27.

Looking more broadly, the shares of Facebook have cooled since hitting a one-year high atop the $208 level in late July. The equity managed a bounce off familiar support at its 160-day moving average in late August, however, and still boasts a 42% year-to-date gain. Overhead sits the $190 region -- home to the stock's 50-day trendline -- with the shares running up to that level earlier today before reversing course. The stock is down 1.6% at $186.88, at last check. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI