Call Traders Blast Social Media Giant After Earnings

META sports a nearly triple-digit year-to-date lead

Deputy Editor
May 8, 2023 at 1:43 PM
facebook twitter linkedin


Meta Platforms Inc (NASDAQ:META) is a frequent flyer on Schaeffer's Senior Quantitative Analyst Rocky White's list of stocks that have attracted the highest weekly options volume in the last 10 days. This week is no different, after the Facebook parent reported better-than-expected first-quarter financial figures.

Over the last two weeks, Meta Platforms stock saw 3,277,402 calls and 2,486,588 puts traded. In that period of time, the the weekly 4/28 240-strike call stood out as the most popular contract.

MAO Chart May 82023

On the charts, META's post-earnings pop sent the shares above the $240 level for the first time since January 2022. Though it's pulled back in sessions since, a floor has developed at the $230 area. Year-to-date, Meta Platforms stock is 92.9% higher.

META Chart May 82023  

Short-term options traders lean heavily bearish, however, per Meta Platforms stock's Schaeffer's put/call open interest ratio (SOIR), which sits in the 90th percentile of annual readings. This suggests the security could still benefit from a shift in sentiment.

Options are certainly the route to go, per the security's Schaeffer's Volatility Index (SVI) of 30%, which stands in the lowest possible percentile of annual readings. This suggests options traders are pricing low volatility expectations. What's more, META's Schaeffer's Volatility Scorecard (SVS) of 85 out of 100 indicates it has exceeded option traders' volatility expectations during the past year -- a boon for buyers. 

 

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! 

 

300x250 - Banner 3 - v1