Unusual Options Activity: Meta Platforms (META)

Social media provider Meta Platforms (META) has more than tripled off of last year’s lows. One trader sees the rally continuing into 2025.

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  • That’s based on the January 2025 $550 calls. With 541 days until expiration, 5,032 contracts traded compared to a prior open interest of 167, for a 30-fold rise in volume on the trade. The buyer of the calls paid $9.95 to make the bullish bet.

    Meta recently traded for just over $290, so shares would need to rally another 90 percent in the next year and a half for the option to move in-the-money. That would surpass Meta’s all-time high of about $376 per share.

    The social media platform has scaled back its plans to become the world leader in virtual reality environments over the past year, and has focused on its core business of social media platforms.

    Meta owns several leading brands, including Facebook and Instagram.

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  • Action to take: After a big run higher, shares have gone from 12 times earnings to 36 times earnings. That’s a hefty multiple for the moment, and the stock could be in for a short-term pause following its rally so far this year. Investors may want to wait for a lower price, say $275 or under, to get in.

    For traders, the long-term calls look attractive. They can likely get a bit cheaper in the coming weeks as shares have started to pull back. Traders should look for a price near the $15 range to get in on the options.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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