This Is How One Trader Is Shorting Facebook

A new bearish call spread was placed on Facebook on Friday at 8:03am PST. Someone sold 3892 of 18 Oct’19 calls at the $195 strike and bought the same number of calls at a higher $210 strike as the hedge for the short calls. The trader is risking $5.8m to earn $1.1m. It appears that he is very confident in his trade.

FB: Time and Sales, Friday Sep 20

The chart below depicts the daily price of Facebook as well as the strikes of the bearish call spread.

FB: Daily Chart

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