Traders are betting on a floor beneath Facebook through the end of the year.
More than 4,000 December 26 puts were sold in the first few minutes of trading today for $2.45 and $2.50, according to optionMONSTER's tracking systems. Open interest at the beginning of the session was 1,410 contracts, indicating that these are new positions.
The put selling represents a belief that FB will be above the $26 strike price at expiration in mid-December. (See our Education section)
FB is up 0.45 percent to $29.14 this morning. Since dropping immediately from its May 18 IPO price of $38, the social network's shares have settled into a range of about $28 to $33.
Disclosure: I own FB shares.
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