Dan Nathan Analyzes Facebook's Options Price Ahead Of Earnings

Dan Nathan spoke on

about implied move that the options market is suggesting for

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.