OptionsHouse

Options Trading News

December 31, 2013  Tue 9:24 AM CT

FB: SEE CHART GET CHAIN FIND STRATEGIES
Facebook has come off its highs in recent days, but one large trader apparently believes that further losses will be limited.

optionMONSTER systems detected the sale of 5,000 April 50 puts for $3.16. This is clearly a new position, as open interest in the strike was just 255 before the trade appeared.

The put seller is looking for FB to hold above $50 through expiration in mid-April, at which time the $3.16 would be kept as profit. The trader takes on the risk of having to buy shares if they are below that level. (See our Education section)

FB is up 0.9 percent to $54.19 this morning. The social-networking stock was at a high of $58.58 last week and were last below $50 on Dec. 11. 
Share this article with your friends


OptionsHouse

Premium Services

Education & Strategy

Keep it simple

One of the appealing features about options trading is that different options can be combined to create a large variety of risk vs. reward profiles.

View more education articles »