Stacey Gilbert's Bullish Option Strategy For Facebook

Facebook Inc FB shares have seen a gradual decline ever since the company declared its last quarterly results on April 22. However, according to option trader and expert Stacey Gilbert, this might be the right time to put on a bullish option trade on Facebook.

Gilbert was on CNBC Monday to discuss why she is bullish on Facebook for short term and to reveal her option trade.

The Bullish Indicators

To elaborate on her bullish case, Gilbert demonstrated a chart that showed the average price target the Street has had on Facebook over the last 12 months and compared it with Facebook's average closing price over the last 12 months.

"In terms of how the ratings are going, 88 percent of analysts have a positive rating," Gilbert stated, "and we have actually seen a decline in terms of the sell rating, with 12 percent remaining with a hold rating."

Related Link: Apple's U.S. Smartphone Market Share Grows; Facebook Top App

She continued, "The difference between the average price target of $95.88 and the closing price today of $78.43 is around 18 percent.

"Believe it or not, that is one of the biggest discounts that we have seen over the past year in terms of where Facebook shares have closed versus that average price target. When we compare it to the S&P 500, Facebook is one of the few companies that is trading at such a discount to its price target."

Gilbert highlighted that Facebook's implied volatility is currently near its all-time lows over the past two years.

The Trade

"Based on all of that, what I am looking is to own a call in Facebook. Specifically, I am looking at the July 17, 2015, expiration; I am looking at the Facebook 80 strike call, and that was offered today at $2.66," Gilbert revealed.