Could The Meta Platforms Meltdown Continue?

Shares of Meta Platforms Inc FB plummeted more than 26% after the Facebook parent reported disappointing fourth-quarter results and issued weak guidance.

On CNBC's "Options Action," Mike Khouw of Optimize Advisors said Meta Platforms was the “busiest single stock option” on Thursday, with around 2 million contracts being traded.

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On balance, the options market got shorted by around $1 billion, he added.

There was a buyer of 6,000 April 240 strike puts, for an average price of $15.80 per contract, Khouw mentioned. The buyer is betting that the “weakness could continue for the next few months,” he further said.