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Big Printin’ – Facebook (FB) to $200?

Shares of Facebook (FB) made a new all time closing high yesterday, and following through today, placing the stock up 42% on the year and resulting in a nearly $150 billion ytd market cap gain. There were a couple trades in the options market yesterday that suggest at least one trader is playing for higher highs between now and next Friday’s close (which will include next Wednesday’s Q2 report) and much higher highs by mid-September.

First, shortly after noon yesterday, when FB was trading $161.64 a trader bought to open 10,000 of the July 28th weekly 170 / 177.50 call spreads for 71 cents or $710,000 in premium. This trade breaks-even at $170.71, up 5.5% from the trading level, and offers profit potential of up to $6.79 between $170.71 and 177.50, or about 4.2% of the stock price at the time of the trade.

It’s worth noting that the implied movement between now and next Friday’s close in the options market is...


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