Facebook Volume Trumps Apple

Apple is normally the leading stock for weekly options, but Facebook is stealing the show today.

optionMONSTER’s tracking programs show bullish trading in the social networking stock, which gapped higher after a surprisingly strong third-quarter earnings report. In particular, they are buying the 24 calls expiring this Friday and selling the 23 puts. If FB continues to climb, the calls will appreciate and the puts will become worthless, making the position similar to owning shares.

In another big transaction, an investor rang the register on a winning bet in the weekly 21.50 calls. He or she sold 5,000 for $2.24, and then bought another 5,000 at the 23.50 strike for $0.64. That netted a payday of $1.60 and maintains a bullish position in the short term. FB is up 21 percent at $23.55 this afternoon.

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