Options Trader Bets $40 Million That Meta (META) Share Price Will Almost Double

ETJ

ETJ

Options Trader Bets $40 Million That Meta (META) Share Price Will Almost Double
Carly Wanna - Bloomberg
An options trader wagered $40 million that Meta Platforms, Inc.'s 158% rally this year has plenty of room to run.
The spread trade — involving more than 26,000 contracts of call options allowing the buyer to pick up shares at $320 each by Jan. 17, 2025 — was countered by selling about 52,000 of $600 calls expiring in December of that year.
/jlne.ws/46Xv1LR
 
ETJ said:
Options Trader Bets $40 Million That Meta (META) Share Price Will Almost Double
Carly Wanna - Bloomberg
An options trader wagered $40 million that Meta Platforms, Inc.'s 158% rally this year has plenty of room to run.
The spread trade — involving more than 26,000 contracts of call options allowing the buyer to pick up shares at $320 each by Jan. 17, 2025 — was countered by selling about 52,000 of $600 calls expiring in December of that year.
/jlne.ws/46Xv1LR
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It would have been wiser to put the cash directly into the stock, but I'm thinking it's some type of transaction that is offset by a counter short position in the stock. Remember Bed Bath & Beyond? someone buying 20 million worth of calls that were 50 points out of the money, well, that didn't end well...
 
So the structure is 1 long to 2 short calls.

What is this guy's min/max profit over risk?

Long 26,000 320C Jan25
Short 52,000 600C Dec25

What happens if the price is 300 in January? What if it stays at 300 from now until next December?

What if it hits 1000 between Jan25 and Dec25? What if it hits 1000 next week? So many ways it can go!
 
meta is currently at 312.05. this is a 1x2 spread. where does 158% rally come in? actually, if it does go 158% the spread is red
 
My goodness!!!

This trader has been sleeping for half a year.

Suddenly he woke up to trade meta options.


Meta has already doubled since half a year ago.


Timing is very important.
 
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Overnight said:
So the structure is 1 long to 2 short calls.

What is this guy's min/max profit over risk?

Long 26,000 320C Jan25
Short 52,000 600C Dec25

What happens if the price is 300 in January? What if it stays at 300 from now until next December?

What if it hits 1000 between Jan25 and Dec25? What if it hits 1000 next week? So many ways it can go!
More...

optionsprofitcalculator.com

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Max profit is a little tricky as its not a straight 1x2 as he short the 600 calendar

You can ballpark his max profit come Jan expiration but implied will play a role...

hes going to lose below 320 as he paid a debit and the shor 12 calls will have some value

If it explodes (1000) hes going to be F%^ed..


Overnight said:
So the structure is 1 long to 2 short calls.

What is this guy's min/max profit over risk?

Long 26,000 320C Jan25
Short 52,000 600C Dec25

What happens if the price is 300 in January? What if it stays at 300 from now until next December?

What if it hits 1000 between Jan25 and Dec25? What if it hits 1000 next week? So many ways it can go!
More...
 
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