Learn the trade here. Make it on tradeMONSTER

Options Trading News

March 28, 2013  Thu 4:10 AM CT

FB: SEE CHART GET CHAIN FIND STRATEGIES
Facebook bounced yesterday, and fast-money traders have been all over the stock.

optionMONSTER's Heat Seeker monitoring system detected money flowing into the short-term 24.50 weekly calls on Tuesday. More than 5,000 were purchased, mostly for $0.90 to $1.01. The contracts were in the money at the time, giving them a tight correlation to the social-media stock. For investors targeting a quick move, these were the perfect instruments.

They were already counting their profits the next day as FB advanced 3.53 percent to $26.09. But that was nothing compared with the move in the options, which at one point traded as high as $1.67. That's leverage of more than 16 times!

FB had been drifting lower since early February, when it stalled around the same $32 level that's been resistance since last summer, shortly after its initial public offering. But now it's bouncing around the same $25 level that was support in late 2012. It's also the 200-day moving average.

Some 281,000 contracts traded in FB yesterday, almost quadruple the daily average. Weeklies accounted for more than 30 percent of the total.
Share this article with your friends


Related Stories

FB

Cramer: Facebook deserves trust

October 30, 2014

The social-media company reported beautiful numbers the other night, but all people heard was that the company was going to dramatically ramp up expenses.

Premium Services

Webinar Playback

eSignal "Back in Black": Multi-Speaker Free Webinar

Education & Strategy

Some things aren't what they seem

As we scan the Heat Seeker, Depth Charge, and other option-tracking systems, we sometimes see heavy activity in calls and...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER