The bearish META options position stays valid only while the daily close holds below 735 and 740; a close above that level would end the downside thesis. META's move came in below the 7% implied move, favoring sellers.
Jump to any passage
Just to remind you, Meta and Tesla, two major companies, announced their results yesterday. The expectation or implied movement was 7%. Now, the truth is, what actually happened is that the price moved by 5%. Tabi.
Given that expectations were higher than what actually happened, who profited from that deal? The buyers profited. The sellers profited in that deal. Oh, wait. Yes, if the actual price is lower than expected, the seller has made a profit.
You said the opposite. Okay, yes. The sellers made a profit. The sellers made a profit.
Today, we will see whether trading volume will confirm or refute these moves . Now, regarding the sell option in Meta, the hypothesis remains valid depending on the daily close, if we stay below the 735 and 740 levels.
If the price closes above this level , then it's over.
The use case here is an upcoming event, say an earnings report, such as Lockheed Martin, such as Meta.
What this channel has said about $META
Verified Investing has 20 calls on this stock; only the adjacent ones are shown.