The July 27 puts are the most active, with large blocks pricing for $2.50 and $2.60. More than 6,600 of those contracts have crossed OptionMonster’s tracking systems so far today. There is also heavy activity in the July 23s, as well as the June 27s that expire next Friday and the following week.
Facebook shares are down another 3.85 percent to $27.10 in afternoon trading, having touched a new low of $26.83 earlier in the session. The stock is down about 29 percent from the $38 level where it went public on May 18. Facebook options became available only at the beginning of this week.
Some 78,000 calls have traded in the name, but those also reflect a bearish sentiment because sales outnumber purchases by almost 2 to 1. This means that traders are willing to sell the stock and believe that upside is limited.
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David Russell is a reporter and writer for OptionMonster. Russell has no positions in Facebook.