A huge option player is looking for Facebook to keep powering higher through the New Year.
optionMONSTER’s Heat Seeker system detected the sale of 26,408 January 45 calls for $5.60 and the purchase of 40,000 January 50 calls for $2.40. The trader recovered more than $5 million of capital in this massive transaction and still owns the equivalent of 2.1 million shares through the options.
The long calls, which lock in the price where the stock can be purchased, will track the share price closely because they are already in the money. Their premiums will climb if the stock continues to rally but will quickly reverse if shares fall.
— Option Monster