On Thursday, there were few unusual August call buying activities on Facebook Inc(NASDAQ:FB) with 2,235 contracts were traded for the strike price of $38 at premium price of $0.10(open interest of 7,311), while 1740 contracts were traded for the strike price of $32 at premium price of $0.85 (open interest of 12,978).
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Investors are quite uncertain about the company’s upcoming quarterly earnings next week and thus investors are playing safe. Those who made above transaction are expecting the company to move significantly higher.
Moreover, on Thursday $28 August put option was the most active with 921contracts were traded and open interested stood at 18,566. Also, $25 August put option was the most active with 833 contracts were traded and open interested stood at 17,482.
The company is under pressure to add new users in certain markets, including the U.S., that make up a significant portion if FB’s sales, according to report by Capstone Investments. A forecasted slowdown in sales led analysts to cut their second-quarter revenue projections to $1.16 billion in the past month. The prediction for profit, excluding some items, fell 10% to 11 cents a share.
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Rory Maher, an analyst at Capstone said that U.S. users on Facebook’s site declined 1.1%, citing analysis of Facebook users in more than 200 countries. He also feels that penetration in the U.S. is reaching maturity, which will cast a shadow on revenue growth and user growth and hence is a reason to be concerned about.