FB: Traders, Liking Facebook, Pick Up Call Options As Stock Rallies

Traders, Liking Facebook, Pick Up Call Options As Stock Rallies
by Interactive Brokers

FB - Facebook, Inc. - Trading traffic in upside call options that expire four weeks from now suggest some traders are positioning for shares in Facebook to extend gains in the near term. Shares in FB increased as much as 2.8% in the early going on Thursday to touch an intraday high of $24.84, helped higher in part by positive analyst comments. The Jul 26 '13 $24.5 strike calls are active for a second session today, with more than 5,500 calls in play versus open interest of 4,121 contracts. Time and sales data suggests the bulk of the $24.5 strike calls were purchased at a premium of $1.10 each during the first 10 minutes of the trading session. The contracts start making money at expiration next month if shares in Facebook rally another 3.0% over today's high of $24.84 to exceed the effective breakeven point at $25.60. Yesterday, it looks like one or more traders snapped up more than 2,000 of the Jul 26 '13 $24.5 strike calls for an average premium of $1.00 each. Facebook options are among the most actively traded today as measured by volume, with upwards of 115,000 contracts traded by 11:50 a.m. ET versus the stock's average daily volume of roughly 141,000 contracts. read more »

Get Seeking Alpha notifications with our iPhone App | Android App | iPad App

More on FB

What Are The Downside Risks For Facebook? by Trefis

Will Facebook Ever Make It? by Tom Lloyd

Facebook: Is Yahoo's Tumblr Tempting Insiders To Run? by ChaPaVe

Other articles that mention FB

Wall Street Breakfast: Must-Know News by Wall Street Breakfast

Should You Buy LinkedIn, Facebook Or Yelp? by Todd Campbell

Fusion-Io: A Better Story Than STEC, But Downside Risks Should Not Be Ignored by Ashraf Eassa

---

Why are you receiving this? You subscribed to real-time article alerts at Seeking Alpha.
If this email was forwarded to you and you wish to subscribe to this email, click here.

Manage your emails:
Get alerts on additional tickers and manage all your email alert choices here
I'm getting too many emails: manage your email alert choices
I'm no longer following FB: unsubscribe from all FB email alerts
This type of alert isn't helpful to me: unsubscribe from article alerts on FB

To ensure you receive these emails in the future, please add account@seekingalpha.com to your address book, contacts or list of safe senders.

Sent by Seeking Alpha, 345 7th Ave. Suite 1400 New York, NY 10001