Someone with a lot of money to spend (and possibly insider knowledge) has taken an unusually bearish stance on Facebook.
And retail traders should know.
We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.
Whether this is an institution or just a wealthy individual, we don't know. But when something this big happens with FB, it often means somebody knows something is about to happen.
So how do we know what the Smart Money just did?
Today, Benzinga's options scanner spotted 61 uncommon options trades for Facebook FB.
This isn't normal.
The overall sentiment of these big-money traders is split between 44.26% bullish and 55.74%, bearish.
Out of all of the special options we uncovered, 26 are puts, for a total amount of $5,407,567, and 35 are calls, for a total amount of $22,928,531.
What's The Price Target?
Taking into account the Volume and Open Interest on these contracts, it appears that the smart money is targeting a price range from $270.0 to $560.0 for Facebook in the over the last 3 months.
Volume & Open Interest Development
In terms of liquidity and interest, the total open interest for Facebook big money options trades today is 117,361 with a total volume of 187,180.
In the following chart, we are able to follow the development of volume and open interest of call and put options for Facebook's big money trades within a strike price range of $270.0 to $560.0 over the last 30 days.
Facebook Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| FB | CALL | TRADE | BEARISH | 12/17/21 | $320.00 | $12.0 million | 11.1K | 5.0K |
| FB | CALL | SWEEP | BULLISH | 11/19/21 | $360.00 | $464.2K | 5.0K | 2.4K |
| FB | PUT | SWEEP | BULLISH | 10/08/21 | $330.00 | $206.4K | 2.4K | 8.4K |
| FB | PUT | SWEEP | BULLISH | 10/08/21 | $330.00 | $201.9K | 2.4K | 10.0K |
| FB | CALL | SWEEP | NEUTRAL | 11/05/21 | $330.00 | $557.1K | 24 | 7.7K |
Where Is Facebook Standing Right Now?
- With a volume of 23,656,729, the price of FB is down 5.22% over the last 24 hours at $325.11.
- RSI indicators hint that the underlying stock may be oversold.
- Next earnings are expected to be released in 24 days.
What The Experts Say On Facebook:
- Jefferies has decided to maintain their Buy rating on Facebook, which currently sits at a price target of $440.0.
- RBC Capital downgraded its action to Outperform with a price target of $425.0
- HSBC has decided to maintain their Reduce rating on Facebook, which currently sits at a price target of $300.0.
- Goldman Sachs downgraded its action to Buy with a price target of $455.0
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely. If you are already an options trader or would like to get started, head on over to Benzinga Pro. Benzinga Pro gives you up-to-date news and analytics to empower your investing and trading strategy.
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