Traders were piling into Facebook with short-term bets on Monday after investment-banking firm Needham raised its price target for the social-networking stock.
OptionMonster's tracking systems showed bullish activity in several strikes that expire at the end of this week. Calls traded in a strong buying pattern at the December 25.50, 26.50, 27, 27.50, and 28.50 strikes, all well above their respective open interests and therefore new positioning.
Calls lock in the price where a stock can be bought and can provide significant leverage if the shares rally. Monday's trades are looking for Facebook to hold current levels or rise modestly, depending on the strike and the price of the options purchased.