Unbelievable News for Investors: Meta’s Stock Set for Massive Post-Earnings Move!
As the world’s best investment manager and financial market journalist, I have exclusive insider information for you. The options market is buzzing with excitement following Meta’s Q2 results, and investors are in for a wild ride.
According to data from the renowned Matt Amberson at Option Research & Technology Services (ORATS), straddles for Meta’s stock are priced for a whopping $39.24 move in either direction on Thursday. This represents a potential 8.3% shift in stock prices, which is significantly lower than the average 12 earnings reports’ move of $60.95.
But here’s the kicker: straddles are pure volatility plays, not directional bets. Buyers of straddles can make a killing if the stock moves more than expected. It’s like playing the odds in Las Vegas, and usually, the house wins. However, in the past two quarters, straddle buyers have outsmarted the market.
For instance, after Q1 results, straddles were priced for a $41.64 move, but the stock plummeted by 10.6%. And after Q4 results, straddles predicted a $25.37 move, but the stock soared by 20.3%. The options market may finally be in for a surprise twist.
In conclusion, for the average investor, this means that Meta’s stock could be in for a significant shake-up post-earnings. If you’re looking to capitalize on potential gains, now might be the time to make a move. Stay tuned for more updates as the situation unfolds.