Trade Of The Week: Facebook
The market is experiencing a resurgence of volatility, adding to the already very active options market. Last week, the bears finally caught up to Facebook (FB). The social media platform’s share price dropped 8% in one day, with options trading over 1 million contracts.
The selloff came courtesy of Verizon (VZ), which decided to pull ads from the popular platform due to concerns over hate speech. The options action was mixed, with a heavy amount of both calls and puts trading, including what looked to be a large collar trade.
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I've been following what's happening with #Facebook with interest. Do you think companies are all of a sudden feeling so socially conscious that they will never advertise on Facebook again? I think it's more likely this is a very temporary reaction until things come down. If they made money advertising on Facebook, they'll return soon enough once the media spotlight has shifted elsewhere.
I think it's a buying opportunity for $FB
Sadly I think you are right. I appreciated how sites like $TWTR were more responsible, but it's clear that Zuckerberg and $FB only cares about the bottom line.
Agreed. As an ESG investor, I refuse to invest in $FB.