Investors discover their new favorite consumer AI play in Meta. Options volume is surging
Shares of the social media giant surged 12% Monday.
TL;DR
- Meta options trading volume was 4.5 times the 30-day average, with nearly $3.9 billion in premium exchanged.
- More call options were bought than put options, with seven of the top ten trades being bullish or neutral.
- Meta's stock surged 12% on Monday, nearing its all-time high, following the announcement of its personal assistant, Muse.
- Muse has topped app store charts with 730,000 downloads in about five days.
- Significant volume was observed in zero-day-to-expiry options and calls with strikes ranging from 720 to 745, as well as October-expiring 775 and 800 strike calls.
- Over $1.3 billion in call premium was likely initiated by call-buyers, with about $1.1 billion tied to selling, indicating a bullish bias balanced by hedging.
- One large trade involved a net $20 million short position across spread trades centered around the sale of a call spread that profits if Meta falls below $740.