Dan Nathan Analyzes Facebook's Options Price Ahead Of Earnings

Dan Nathan spoke on

about implied move that the options market is suggesting for

(NASDAQ:

) ahead of earnings. Nathan explained that the cost of premium for the weekly at the money put and at the money call costs $6 in total, which is around 6 percent of the Tuesday's closing price. This means that the market is expecting a 6 percent move in either direction on earnings. The buyer of a straddle, which is a name for a long call and long put options strategy, needs a move above $109 or below $97 to make money.

is currently trading at $102.58 and Nathan expects a consolidation around that price level.