Facebook (FB) with another faceplant Monday, tripping NAZ circuit breakers and losing another $2.11 to $20.75 in heavy trading of 61.5 million shares after Barron’s questioned current valuations. Options on the stock are actively traded as well, with 127,000 calls and 149,000 puts traded on the social media company so far. The top trade is an 8000-lot of March 15 puts traded at 90 cents per contract on ISE. Data from the exchange is reporting an opening put write (for a firm account). Dec 15 puts are the most actives after 13,300 traded and put sellers are possibly driving the flow in those deep OTM puts as well. Weekly 22 calls, which are almost 6 percent OTM after today’s move, are busy. 12,430 contracts changed hands. Oct 22 calls, 23 calls and 20 puts are among the most actives as well and 30-day ATM implied volatility in FB options moved up 16 percent to 56.
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.