It’s been a rough year for Facebook, but traders are betting the stock may soon see a bounce.
On Friday investors bought more than 6,000 calls at the February 145 strike price, according to Investitute co-founder Pete Najarian.
These particular calls expire on February 15th, so traders are betting the stock will bounce 3.85% by then. (Facebook closed at $139.63 on Thursday.)
“It’s a big bet that they [traders] see some sort of rally coming out of Facebook over a short period of time,” Najarian said on Friday’s “Halftime Report.”
Shares of Facebook slid further this week as the broader tech rout continued. The Facebook sell-off began in March following the Cambridge Analytica scandal, although for a period of time it did seem like the stock had recovered. Shares of the Menlo Park-based company climbed steadily higher, reaching an all-time intraday high of $218.62 on July 25th.
But since then the stock has fallen more than 36% after the tech giant missed revenue estimates for two straight quarters.
Pete Najarian owns Facebook calls.
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