Facebook (FB) is off 89 cents to $29.83 in active trading of 3.5 million shares and, after a five-day 7 percent losing skid, is trading at its lowest levels in almost a month. Options order flow is interesting today as 28,000 calls and 8,500 puts traded on the social media giant in the first thirty minutes. One of the top trades is a 2500-lot of August 38 calls for 15 cents on the ISE. A customer bought-to-open, according to ISEE. A 3750-block of Jul 32 calls, which are falling 7.6 percent out-of-the-money and expiring at the end of this week, traded for 10 cents when the market was 5 to 10 cents. Volume in the July 32 calls is now approaching 10,0000. July 30 and 31 calls on Facebook are seeing brisk trading as well. 30-day ATM vols are moving up 14 percent to 56, as players begin to eye the company’s first quarterly profit report as a publicly traded entity. The report is due out July 26. News wires are also buzzing about a public record that showed Facebook founder Mark Zuckerberg refinancing a $5.95 billion adjustable-rate mortgage loan at a rate of only 1.05 percent (Link), but that’s probably not a factor motivating the heavy call buying in Facebook Monday morning.
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.