Option activity was extreme in Facebook yesterday, and some traders made some fast money.
OptionMonster's real-time scanners showed heavy activity in the Weekly 28.50 calls that expire today. Those options went for $0.05 in the morning with the stock down around $27.70, but when Facebook started inching higher those calls ramped up to $0.45.
Calls lock in the price where investors can buy shares, so they have the ability to generate big leverage when a stock rallies. But if the shares don't rise, yesterday's contracts will lose all of their value when the closing bell rings today.
Facebook shares rose 2.39 percent to $28.24 yesterday and saw total option turnover of more 287,000 contracts, twice its daily average. That volume was enough to make the social-networking company the fourth-most active name in the entire option market.
—By CNBC Contributor Pete Najarian
Options Trading School:
Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com. Najarian owns FB shares.