Facebook options have been very active Wednesday, as traders made predictions about the company's earnings report, which will be released after the close. And there are several reasons that traders might want to get bullish on the stock.
One trader has taken a bullish position on the stock, purchasing 2,444 of the Aug. 2 weekly 27-strike calls for 84 cents each. This trade cost the trader $205,000, and that is the maximum loss on the trade. In order for this trade to make money, Facebook shares will need to trade above $27.84—so this trader is expecting to see a 5.7 percent increase within nine days.
Analysts expect to see Facebook earn 14 cents per share, and report revenue of $1.62 billion. But while earnings and revenue will be important, other statistics could play a larger role in helping analysts determine whether the quarter was a boom or a bust.