Facebook is expected to move 5.9% following earnings after the close on Wednesday, below its historical average of around 10%, Jim Strugger, Derivatives Strategist of MKM Partners, tells TheStreet’s Jill Malandrino based on the what the options market is telling us. Based on other earnings we have seen in the social media space, Facebook could see a higher move. Rather than buying stock into the earnings print, Strugger would look at a 100%-risk control options strategy involving a put sale or put spread sale to capture some premium, which is effectively a long stock position that takes advantage of the put skew.
Subscribe to TheStreetTV on YouTube:
For more content from TheStreet visit:
Check out all our videos:
Follow TheStreet on Twitter:
Like TheStreet on Facebook:
Follow TheStreet on LinkedIn:
Follow TheStreet on Google+:
source
