The Facebook (FB) frenzy continues. The stock has seesawed back and forth, but was recently down 63 cents to $28.21 and briefly tested the $28 level (falling to a new low of $28.03) in active trading of 44.7 million shares. 201,000 options traded on the stock. While the projected volume is 250K and well off yesterday’s 365K, FB has quickly become one of the most actively traded listed equity contracts. The order flow seems to reflect mixed sentiment. While some investors are showing interest in upside Jun 30 calls, where 20,600 changed hands and 60 percent traded at the offer, a bearish three-way recently printed on the ISE. The investor sold 1,500 Dec 35 calls on Facebook at $2.21 to by 1,500 Dec 23 – 28 put spreads for $2.56. The three-way, for a 35-cent net debit, is an opening position for a customer account, according to ISEE.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.