Options News
$FB bulls post 4-fold gains
Upside option positions in Facebook have racked up huge profits in less than a week. On March 26, Investitute’s tracking systems found that 4,000 Weekly $172.50 calls expiring on April 5 were bought for $1.16 to $1.48 with shares at $168.72. This was clearly fresh buying, volume was far above the strike’s existing open interest […]
Upside option positions in Facebook have racked up huge profits in less than a week.
On March 26, Investitute’s tracking systems found that 4,000 Weekly $172.50 calls expiring on April 5 were bought for $1.16 to $1.48 with shares at $168.72. This was clearly fresh buying, volume was far above the strike’s existing open interest of 1,718 contracts. Investitute co-founder Pete Najarian cited the unusual activity at that time on CNBC’s “Halftime Report.”
Those calls traded for $5.70 today, more than 4 times their average purchase price. The stock rose 5.45% in the same time frame, showing how quickly options can far outperform their underlying shares.
It is the second winning trade in the name posted on Investitute in the last month.
FB reached a session high of $177.96 before pulling back with the rest of the market to close at $173.54, off 0.38% on the day. The social-media giant is trading at its highest level since last Labor Day despite a wave of negative headlines.