Facebook Options Jump on Bullish Bets Ahead of Earnings

The video discusses recent options activity in the Russell 2000 and IWM, highlighting a significant bearish put spread. It analyzes the potential market impact of these trades, especially given the volatile nature of August and the start of earnings season. The video also covers upcoming tech earnings, focusing on Facebook, Amazon, and Alphabet, and notes interesting options trading activity in Facebook ahead of its earnings report.

What is the primary reason for the bearish put spread trade on the IWM ETF?

• To increase exposure to tech stocks

• To protect against potential market volatility

• To hedge against currency fluctuations

• To capitalize on a market rally

What is the investor's strategy involving the 146 and 143 strike options on the IWM ETF?

• Buying both strikes to maximize gains

• Selling both strikes to minimize losses

• Buying the 146 strike and selling the 143 strike to reduce costs

• Selling the 146 strike and buying the 143 strike to increase costs

What is the expected market movement for the IWM ETF over the next four to five weeks?

• No change

• A significant rally

• A major crash

• A slight pullback

Which tech companies are mentioned as having upcoming earnings reports?

• Twitter, Snapchat, and Pinterest

• Tesla, IBM, and Intel

• Facebook, Amazon, and Alphabet

• Apple, Microsoft, and Netflix

What is the investor's outlook on Facebook's performance based on the options trading activity?

• Uncertain, expecting high volatility

• Negative, expecting a decline

• Neutral, expecting no change

• Positive, expecting an upside