Shares of Meta Platforms Inc FB plummeted more than 26% after the Facebook parent reported disappointing fourth-quarter results and issued weak guidance.
On CNBC's "Options Action," Mike Khouw of Optimize Advisors said Meta Platforms was the “busiest single stock option” on Thursday, with around 2 million contracts being traded.
See Also: How Much Money Did Mark Zuckerberg Just Lose? He's No Longer A Top 10 Billionaire
On balance, the options market got shorted by around $1 billion, he added.
There was a buyer of 6,000 April 240 strike puts, for an average price of $15.80 per contract, Khouw mentioned. The buyer is betting that the “weakness could continue for the next few months,” he further said.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.