Options Trader Bets $40 Million That Meta (META) Share Price Will Almost Double Carly Wanna - Bloomberg An options trader wagered $40 million that Meta Platforms, Inc.'s 158% rally this year has plenty of room to run. The spread trade — involving more than 26,000 contracts of call options allowing the buyer to pick up shares at $320 each by Jan. 17, 2025 — was countered by selling about 52,000 of $600 calls expiring in December of that year. /jlne.ws/46Xv1LR
It would have been wiser to put the cash directly into the stock, but I'm thinking it's some type of transaction that is offset by a counter short position in the stock. Remember Bed Bath & Beyond? someone buying 20 million worth of calls that were 50 points out of the money, well, that didn't end well...
So the structure is 1 long to 2 short calls. What is this guy's min/max profit over risk? Long 26,000 320C Jan25 Short 52,000 600C Dec25 What happens if the price is 300 in January? What if it stays at 300 from now until next December? What if it hits 1000 between Jan25 and Dec25? What if it hits 1000 next week? So many ways it can go!
meta is currently at 312.05. this is a 1x2 spread. where does 158% rally come in? actually, if it does go 158% the spread is red
Kid on Reddit bought $39,000 worth of $230 Jan 2024 calls when Meta was $85. He’s probably thrilled seeing this trade. He’s up $3 million.
My goodness!!! This trader has been sleeping for half a year. Suddenly he woke up to trade meta options. Meta has already doubled since half a year ago. Timing is very important.
Max profit is a little tricky as its not a straight 1x2 as he short the 600 calendar You can ballpark his max profit come Jan expiration but implied will play a role... hes going to lose below 320 as he paid a debit and the shor 12 calls will have some value If it explodes (1000) hes going to be F%^ed..