Trader targets floor in Facebook
Chris McKhann | [email protected]
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.