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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Complete Updates on Options Activity
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.
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