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Why Facebook is pinning $100: Trader

This earnings season has been dominated by some massive moves in the tech world. Google and Amazon shares surged by more than 15 percent following each company's report, while Apple and Twitter plunged. And if one market measure proves correct, the next tech giant to steal the show is Facebook.

"The options market is implying an $8 move in the stock in either direction," options expert Andrew Keene said Tuesday on CNBC's "Trading Nation." That's a nearly 9 percent move higher or lower than Tuesday's closing price of $95.29. "I think we see it bust through $100."

And it's the flux of options activity in the 100-strike that has him so convinced. "We saw a huge buy of an upside call spread as well as puts being sold," the founder of Keene on the Market said.

Traders often look to strikes that have high open interest as levels that a stock could soon visit. That's because market makers often look to hedge their exposure by purchasing or selling stock based on their options position. In many cases, strikes with high open interest act as a magnate for the stock, a process called "pinning" in options parlance. In the case of Facebook, open interest at the $100 remains high.

Read MoreTwitter stock sinks as execs warn on user growth

But while the options market is pining for a rally, the charts are suggesting a pullback, at least in the near term.

"It's become a little extended," Ari Wald of Oppenheimer said in a "Trading Nation" segment. Shares of the social butterfly are up 18 percent in the past three months.

But that doesn't stop him from liking the stock as a long-term investment. "I think if you get a little bit of a pullback to support at $91, you may want to go in and buy," said Wald. "Longer term, it's going higher."

Facebook reports fiscal 2015 second quarter results Wednesday after the closing bell. Analysts surveyed by FactSet are expecting the company to earn 47 cents a share on early $4 billion in revenue.

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