Facebook (FB), which saw total open interest climb to more than 1 million contracts with help from hefty put buying yesterday (see 6/13 color), is seeing relatively light volume today. 19,000 calls and 29,000 puts so far. The projected volume is 144K and well off the recent pace of 239K. Shares are up 44 cents to $27.71 and the top trades are an Aug 21 – 28 put spread for $2.45, 4270X on ISE. A customer bought the spread, to open, according to ISEE. If so, it’s a bearish play with a max payout if shares fall to $21 or less through the August expiration, which represents a 24.2 percent plunge over the next 64 days. (WhatsTrading Premium Alert Sample — posted at 11:00 ET).
About the Author (Author Profile)
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.