Facebook Inc (FB) $31.91 +0.00%

| May 29, 2012 | 0 Comments More

Option traders finally get a crack at trading Facebook this morning, as all nine exchanges have listed what may be one of the busiest single stock option classes available to trade. Last Friday’s FB spot volume of 37million shares puts it in 13th place among single stocks with options, and with the average option:stock turnover ratio among the top 25 names near 18%, we could easily see 100K contracts trade today, which would put FB in 11th place among single stocks. Results our poll last week showed an average expected volume of about 88K contracts today, with June ATMIV in the 30-40% range. Avg expected FB share price in a year was $43.60. If you’d like to set up a FB option trigger, simply type the ticker and size desired (FB 500).

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About the Author (Author Profile)

Henry Schwartz is the president of Trade Alert LLC, a provider of real-time options analysis tools to leading Wall Street firms. His systems analyze hundreds of thousands of transactions per second to help professionals identify and interpret market activity in real time, supporting informed trading decisions and intelligent idea generation. He has held institutional trading and management roles with Bank of America, Bear Stearns, Salomon Brothers and the Hull Group, and made markets on the CBOE and AMEX floors in the US, and EUREX and MONEP overseas. Prior to founding Trade Alert, he led the electronic market-making group at Bank of America coincident with the launch of the International Securities Exchange. He received his bachelor’s degree in Economics from the University of California, San Diego and his MBA from NYU’s Stern School of Business.

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