META – Your Bullseye Pick Of The Week - Bullseye Pick of the Week
The options were up over 320%
The news that META would be firing around 11,000 employees sent the stock higher. I took my 116% and left, although there was more than 320% available. On to the next one!
Here was my reasoning:
Now, today META is rallying in pre-market on news that they are planning to slash some of their bloated payroll. This is one of the first positive steps I have seen them take for the business in a while.
I want to see if META will dip a little after the open and that is where I plan to make my purchase. I want to buy the $93 calls that expire on the 18th. They closed around $2.60 on Friday and I am looking to buy them a little higher around $3.20 at some point today.
I think $100 is a nice, round number that is going to attract META on a rebound, so just south of that is going to be my target price. If it crushes that, then I think around $5 higher is the next logical target I would look at.
If I am wrong, I want to use the recent low of $88 as my stop. The stock tested that level 2x last week and if it breaks now, then I am going to get out of the trade.