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Dan Nathan Sees Unusual Options Activity In Facebook Ahead Of Earnings

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Dan Nathan Sees Unusual Options Activity In Facebook Ahead Of Earnings
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CNBC Options Action's Dan Nathan spoke on the show about bearish options activity in Facebook Inc (NASDAQ: FB) ahead of earnings.

The options market is implying a move of around 6.5 percent, which is the average over the last four quarters. One trade caught Nathan's attention on Tuesday. A trader bought 1,500 contracts of the February 69 puts for $0.93. The trade breaks even at $68.07 or 10 percent lower from the current market price.

Nathan believes that this trade is a protection for a possible disaster that could happen if the company misses the estimates on its earnings report.

Posted-In: CNBC Dan Nathan Options ActionPreviews Options Markets Media Trading Ideas Best of Benzinga

 

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