Learn the trade here. Make it on tradeMONSTER

Options Trading News

December 26, 2012  Wed 4:15 AM CT

FB: SEE CHART GET CHAIN FIND STRATEGIES
Traders were charging into Facebook with short-term bets on Monday after investment-banking firm Needham raised its price target for the social-networking stock.

optionMONSTER's Heat Seeker system showed bullish activity in several strikes that expire at the end of this week. Calls traded in a strong buying pattern at the December 25.50, 26.50, 27, 27.50, and 28.50 strikes, all well above their respective open interests and therefore new positioning.  

Long calls lock in the price where a stock can be bought and can provide significant leverage if the shares rally. Monday's trades are looking for Facebook to hold current levels or rise modestly, depending on the strike and the price of the options purchased. (See our Education section)

FB gained 2.55 percent on Monday to close at $26.93 after Needham raised its price target to $33 from $25 that morning, citing estimates for mobile-revenue growth. Shares had climbed sharply since hitting support around $19 in mid-November but have failed to break resistance at the $28 level.

Total option volume in the name exceeded 88,000 contracts, well above its full-session average despite the truncated holiday session.

(A version of this post appeared on InsideOptions Pro on Monday.)
Share this article with your friends


Related Stories

FB

Trade gives Facebook room to run

August 22, 2014

The social network is up more than 20 percent in the last three months and has been hovering near record highs following a strong earnings report a month ago.

Premium Services

Education & Strategy

How to get the hedge you want

Hedging is a good idea. As I have said countless times, you insure your house and your car, but most...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER