I saw three unusually large put bets this morning, by the same institution, probably MS, GS or JPM. First they bought, 20,000 Feb 31 for around $3,500,000, then they bought 16,000 March 31 for $3,336,000, then they went out to June and bought 10,000 June 22’s for $480,000! For a total of $7,340,000!!! This all happened within 5 minutes and was very obvious.
Just proves to me that these banks knew ahead of time that FB was going lower, in fact they are most likely the ones selling after hours to drive the stock lower. FB could have beat by 100% and the stock still would have tanked.
How do you know they were not SELLING these puts? Maybe they collected the 7.34 million and are in fact manipulating the stock price to stay ABOVE 31 so their puts expire worthless? I say this because initially facebook hit 28 on the announcement and then just SHOT UP from there. So these guys were probably defending their positions.
No, they ( investment banks ) were just having a difficult time controlling the after hours price action due to much higher volume from retail investors, once the enthusiasm wore off they slowly pushed the price lower. IMO, this move lower had nothing to do with Facebooks earnings, it was more about how they could extract the most money from retail investors.
EXACTLY! Read my post from 23 hours ago. I saw the very same thing yesterday, and commented about it. The SEC needs to start doing their job. There is trading taking place involving insider information.