Shares of Facebook Inc (NASDAQ:FB) had posted its worst single day loss on Friday after posting its second quarter earnings, which was its first earnings since stock market debut. If we take a look at the options market, the stock looks further brearish. Here are some interesting trade happened during the session.
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January 2013 Series - Looking at the January put options; about 4.14K contracts took place on the $20 strike price with an open interest of 63,554.
December Series – Although December expiry is five months away from now, but there were numbers of unusual contracts happened. Looking at the December put options; about 8K contracts took place on the $20 strike price followed by volume on the $15 strike price was at 7,717 with an open interest of 1,623. Noticeably one more,
November Series - Looking at the November put options; about 1K contracts took place on the $22 strike price with an open interest of 9,069 followed by volume on the $20 strike price was at 1,853 with an open interest of 749.
On more interested strike price was $15 strike price for the month of September where over 5.05K contracts took place with an open interest of 1,999.
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With the stock price tumbled to new lows and concerns over the company’s potential to monetize mobile space would continue to pressure the stock. The stock may not fall further, but one thing may happen is that gains could be capped at around $25-26 levels.
Well whatever be the outcome after today’s fall, investors should avoid taking any buy position in the stock at least for now. If we see any rebound after a 20% fall in two trading sessions, then we should not be surprised be short sellers comes back and pull the stock to another low.