Options Bears Target Meta Platforms Stock Despite Sector Boost

Puts are running at double the intraday average

Deputy Editor
Aug 31, 2022 at 3:48 PM
facebook twitter linkedin


The shares of Facebook parent Meta Platforms Inc (NASDAQ:META) are up 3.5% at $162.73 at last glance, and earlier climbed as high as $167.84 after the social media sector got a boost from Snap Inc's (SNAP) restructuring plan. Options bears are chiming in amid the surge, however. 

So far, 347,000 puts have crossed the tape -- double the intraday average and far outweighing the 243,000 calls exchanged. The weekly 9/2 170-strike call and 165-strike put are the most popular, with new positions being opened at both. 

Though it has found a floor at the $154 level, META is underperforming on the charts, facing pressure at the $190 level as it struggles to rebound from its recent lows. This technical weakness comes despite a massive drop in short interest, which doesn't bode well for the shares. During the last two-week reporting period, short interest dropped 98%, and now represents a measly 0.02% of the stock's available float. 

Analysts are leaning bullish toward the equity. Of the 30 analysts in coverage, 22 carry a "buy" or better rating, with seven a tepid "hold," and one "strong sell." Plus, the 12-month consensus price target of $235.62 is a 44.5% premium to current levels. 

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners