Facebook, Inc. (NASDAQ:FB) - Facebook Options Traders Forecast Blue Skies Ahead


Facebook Inc. (NASDAQ: FB) traded higher on Friday in an attempt to break the bulls from a daily bull flag.

The bull flag, with the pole being raised between May 19 and May 27 and the flag between May 28 and Friday (June 4), could propel Facebook to a new all-time high if the pattern is recognized by trading algorithms and institutions becomes.

A number of options traders believe Facebook will see new highs in the coming weeks and months, with one trader believing a move towards the $ 350 mark is possible. Together, these traders are betting over $ 2.12 million. Facebook will be a blue sky.

Why it matters: When a sweep order occurs, it indicates that the trader wanted to enter a position quickly and is expecting a large movement in the stock price to come. A sweeper pays the market price for the call option instead of placing a bid which searches the order books of multiple exchanges to immediately execute the order.

These types of call option orders are usually placed by institutions and retail investors may find it useful to look out for sweepers as this indicates that “smart money” has taken a position.

See also: How to Buy Facebook Stock

The Facebook option deals: Below is a look at the notable option warnings courtesy of Benzinga Pro:

  • At 9:32 a.m. on Friday, a trader near the letter made a call sweep of 250 Facebook options with an exercise price of $ 320, which expired on June 11th. The trade represented a bullish bet of $ 216,250 for which the trader paid $ 8.65 per options contract.
  • At 9:32 a.m., a trader near the letter made a call sweep of 250 Facebook options with an exercise price of $ 320 that expired on June 11th. The trade represented a bullish bet of $ 217,000 for which the trader paid $ 8.68 per options contract.
  • At 9:58 a.m., a trader near the letter made a call sweep of 246 Facebook options with an exercise price of $ 320, which expired on June 11th. The trade represented a bullish bet of $ 255,840 for which the trader paid $ 10.40 per options contract.
  • At 10:04 a.m., a trader made a call sweep over the ask of 256 Facebook options with an exercise price of $ 320, which expired on June 11th. The trade represented a bullish bet of $ 273,408 for which the trader paid $ 10.68 per options contract.
  • At 10:05 a.m., a trader near the letter made a call sweep of 247 Facebook options with an exercise price of $ 320, which expired on June 11th. The trade was a bullish bet of $ 265,525 for which the trader paid $ 10.75 per options contract.
  • At 10:11 a.m., a trader near the letter made a call sweep of 291 Facebook options with an exercise price of $ 350, which expires on August 20. The trade represented a bullish bet of $ 277,905 for which the trader paid $ 9.55 per options contract.
  • At 10:34 a.m., a trader near the letter made a call sweep of 267 Facebook options with an exercise price of $ 325, which expired on July 16. The trade represented a bullish bet of $ 347,100 for which the trader paid $ 13.00 per options contract.
  • At 10:34 a.m., a trader near the letter made a call sweep of 267 Facebook options with an exercise price of $ 330, which expired on July 16. The trade represented a bullish bet of $ 275,010 for which the trader paid $ 10.30 per options contract.

FB price promotion: Facebook stock rose 1.7% to $ 331.74 at the time of publication.

© 2021 Benzinga.com. Benzinga does not offer investment advice. All rights reserved.

https://thedailytradingnews.com/facebook-inc-nasdaqfb-facebook-options-traders-forecast-blue-skies-ahead/

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