Facebook Makes New All-Time High, Options Traders Grab Calls

Facebook Inc FB hasn’t issued any notable news since it printed its first-quarter 2021 earnings report on April 28, but that hasn’t stopped the stock from reaching new all-time high after new all-time high.

On Tuesday, the Cathie Wood’s-led ARK Invest said it believes Facebook’s 2022 smartwatch launch will lead the social media giant into the augmented reality space.

The news helped Facebook reach a new all-time high of $339.92 early Monday morning before trading down slightly in consolidation. Facebook’s stock is already up about 25% this year, and 147% since the pandemic-induced dump.

Options traders believe there’s more upside for Facebook and on Tuesday purchased over $4.1 million worth of call contracts, with one single order totaling over $1.41 million.

See Also: How to Buy Facebook Stock

Why It’s Important: When a sweep order occurs, it indicates the trader wanted to get into a position quickly and is anticipating an imminent large move in stock price. A sweeper pays market price for the call option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

These types of call option orders are usually made by institutions, and retail investors can find watching for sweepers useful because it indicates “smart money” has entered into a position.

The Facebook Option Trades: Below is a look at the most notable options alerts, courtesy of Benzinga Pro:

• At 9:31 a.m., a trader executed a call sweep near the ask of 809 Facebook options with a strike price of $340 expiring on June 18. The trade represented a $202,250 bullish bet for which the trader paid $2.50 per option contract.
• At 9:31 a.m., a trader executed a call sweep near the ask of 249 Facebook options with a strike price of $330 expiring on June 18. The trade represented a $236,052 bullish bet for which the trader paid $9.48 per option contract.
• At 9:32 a.m., a trader executed a call sweep near the midpoint of 4827 Facebook options with a strike price of $340 expiring on June 18. The trade represented a $1.41 million bullish bet for which the trader paid $2.93 per option contract.
• At 9:36 a.m., a trader executed a call sweep near the ask of 1949 Facebook options with a strike price of $340 expiring on June 18. The trade represented a $613,935 bullish bet for which the trader paid $3.15 per option contract.
• At 9:36 a.m., a trader executed a call sweep near the ask of 282 Facebook options with a strike price of $330 expiring on July 16. The trade represented a $415,950 bullish bet for which the trader paid $14.75 per option contract.
• At 9:31 a.m., a trader executed a call sweep near the ask of 646 Facebook options with a strike price of $342.50 expiring on June 18. The trade represented a $132,430 bullish bet for which the trader paid $2.05 per option contract.
• At 9:40 a.m., a trader executed a call sweep near the ask of 575 Facebook options with a strike price of $340 expiring on June 18. The trade represented a $180,550 bullish bet for which the trader paid $3.14 per option contract.
• At 9:42 a.m., a trader executed a call sweep near the ask of 724 Facebook options with a strike price of $340 expiring on June 18. The trade represented a $223,716 bullish bet for which the trader paid $3.09 per option contract.
• At 9:45 a.m., a trader executed a call sweep near the ask of 637 Facebook options with a strike price of $340 expiring on June 18. The trade represented a $212,758 bullish bet for which the trader paid $3.34 per option contract.
• At 9:54 a.m., a trader executed a call sweep near the ask of 274 Facebook options with a strike price of $330 expiring on June 18. The trade represented a $252,628 bullish bet for which the trader paid $9.22 per option contract.
• At 10:53 a.m., a trader executed a call sweep near the ask of 870 Facebook options with a strike price of $340 expiring on June 25. The trade represented a $317,550 bullish bet for which the trader paid $3.65 per option contract.
• At 12:25 p.m., a trader executed a call sweep near the ask of 455 Facebook options with a strike price of $340 expiring on June 18. The trade represented a $104,650 bullish bet for which the trader paid $2.30 per option contract.

FB Price Action: Shares of Facebook were trading around $336.12 at publication time.