Options Activity Might Suggest More Downside for Facebook (FB)
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Whether you have an account with it or not, Facebook (Nasdaq: FB) shares are trading hot Friday, garnering plenty of trader attention. The slump today comes following Facebook issuing its first quarterly report as a public company, issued late Thursday.
Shares of Facebook are down 9.4 percent in the afternoon session, well off the low of $22.28 hit just after the start of trading.
Of note, there is some unusual volume in the options market for Facebook. Looking at the November put options, volume on the 25 strike price is at 10,295, which compares to volume of 120 at the 24 strike and 52 at the 26 strike. Open interest of 2,529 is just about in-line with other strikes.
Trades were made from 9:49am to 10:29am EDT Friday, in several smaller blocks.
It's not clear whether the positions are long or short, though the total value on the option -- which is currently bid at $3.30 with $3.50 being asked -- saw a 26.9 percent increase.
One thought might be Facebook's third-quarter 2012 report, which is projected to happen on October 25th. The date falls just following expiration of October contracts on October 20th, making November the next best option if more dire news out of the company is expected.
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Shares of Facebook are down 9.4 percent in the afternoon session, well off the low of $22.28 hit just after the start of trading.
Of note, there is some unusual volume in the options market for Facebook. Looking at the November put options, volume on the 25 strike price is at 10,295, which compares to volume of 120 at the 24 strike and 52 at the 26 strike. Open interest of 2,529 is just about in-line with other strikes.
Trades were made from 9:49am to 10:29am EDT Friday, in several smaller blocks.
It's not clear whether the positions are long or short, though the total value on the option -- which is currently bid at $3.30 with $3.50 being asked -- saw a 26.9 percent increase.
One thought might be Facebook's third-quarter 2012 report, which is projected to happen on October 25th. The date falls just following expiration of October contracts on October 20th, making November the next best option if more dire news out of the company is expected.
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