Facebook implied volatility sharply higher as shares come under fire
Facebook implied volatility sharply higher as shares come under fire. The stock down 8.2% to $163 after the FTC opened a competition probe of the social media company. Options volume has reached double the daily average, with some players buying June 7th 175 calls in anticipation of a turnaround over the next four days. 16.7K changed hands. 14.2K Dec 240 calls and 13.1K Aug 180 calls also traded - June 7th 170 calls, 160 puts, and 172.5 calls are next most active. Total volume shows calls leading puts by a wide margin: 263K vs. 159K. Thirty-day implied volatility ripping 26% higher to 37 and into the 80th percentile of the one-year range, while 30-day IV skew at 7.3 (25 delta puts with 40.3% vols compared to 33% for equivalent calls) is in the 98th percentile.