Options Trading News

September 23, 2016  Fri 6:14 AM CT


Traders are positioning for a possible pullback in Facebook.

optionMONSTER's monitoring program shows that 9,000 Weekly 125 puts expiring on Sept. 30 were sold for $0.18 while 9,000 Weekly 125 puts expiring on Oct. 14 were purchased for $0.68 yesterday. Volume was below open interest in the nearer-term contracts, indicating that a downside position was rolled forward by two weeks.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

FB rose 0.08 percent to $130.04 yesterday and is up 14 percent in the last three months. The social network's next quarterly results are estimated for release after the close on Nov. 2.

Overall option volume was about average in FB yesterday.

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