Summary : Most of that skewed by the most recent two quarters, when it reported numbers that moved the stock by 17% and 26% respectively,” Michael Khouw, chief investment officer at Optimize Advisors, said Tuesday on CNBC’s “Fast Money.”
The instability in the stock around recent earnings reports has caused an implied volatility spike in Meta’s options, meaning that contracts that expire across the next few weeks and months will come with elevated premiums.
“The way options traders sometimes try to take advantage of elevated premiums is with calendar spreads, and we saw several of those [Tuesday], including a diagonal.
Meta was up more than 5% on Wednesday afternoon.
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