REPORT: Options Traders Lukewarm On Effects Of Facebook’s 1Q Earnings Call

Options traders are lukewarm about the potential impact of Facebook’s first-quarter earnings call Wednesday afternoon, according to a report in The Wall Street Journal’s MoneyBeat blog.

MoneyBeat reported that implied volatility, which keys options pricing, generally rises on a consistent basis ahead of earnings reports, but the implied volatility of Facebook dropped for the fourth consecutive session Monday.

According to MoneyBeat, Facebook’s implied volatility fell to 47.44 Monday, which represents the implication of daily moves of 3 percent for the stock over the coming month, while the 57.77 implied volatility the social network reached two days prior to its fourth-quarter earnings call in January represents daily moves of 3.6 percent.

Ophir Gottlieb, managing director at options-data firm LiveVol, told MoneyBeat:

Facebook shares have been reacting less and less off of each subsequent earnings report, and in between earnings, the shares have been less volatile. On top of that, the general market has been moving higher and the VIX is down, so there is less systemic risk.

Readers: What effect do you think Wednesday afternoon’s first-quarter earnings call will have on Facebook stock?

Image courtesy of Shutterstock.

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