Facebook Inc (FB) $27.51 -0.76%

| June 4, 2012 | 0 Comments More

More records in Facebook today, with shares touching a new low of $26.57 and a new high for 30day ATMIV, near 68.5% and on track for a new option volume record of half a million contracts. Aug and Sep 25 strike puts are the most active, with nearly 9000 of each on the tape. After just four trading days, total option open interest stands at 602,000 contracts, with 53% of the open contracts in June and July expiries (try /oiterm FB to see the data). While much of the flow to date has been downside hedging, one bullish trade stands out today as an opening customer sold 2500 sep 28 puts to open on the ISE for 4.50 when shares were near their lows at 10:06am.

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Category: All Stocks, Large Cap Stocks, Software & Computer Services

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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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