Meta Platforms, Inc Trading Significantly Lower Today

Tom Gentile

Posted in
Current Events

By: Tom Gentile
February 3rd, 2022

2 mins read

Meta Platforms, Inc. Misses Earnings and Guides Lower

Earnings for the fourth quarter for Meta Platforms, Inc. (NYSE: FB) came in at $3.67,  This is less than the 3.84 analysts were expecting. It did however beat on revenue for the quarter coming in at $33.67 billion vs. $33.4 billion estimated.

They also guided lower on revenue growth expectations for the next quarter.

Major Drop in Stock Price on Meta Platforms, Inc. (NYSE: FB)

You can read more online about all the specifics that went in to the report and their guidance, but I will mention what most are focusing on and that is their share price right now.

The stock dropped between 23-25% trading at $241 and change at the time of this writing.

An Interesting Option Strategy Consideration for Meta Platforms / Facebook

Usually after a company announces earnings there is a drop in the Implied Volatility (IV) of their options.

This time, likely due to the earnings miss and poor next quarter guidance, volatility hasn’t dropped off that much.

Instead of buying options with high IV one can consider selling that high IV in the form of a Call Credit Spread.

Assess a price point with a short-term expiration, like in a couple of weeks or less, and price out selling to open a strike with that price you don’t think it will hit in a couple of weeks or less and Buy to Open on the same order ticket a strike with the same month’s expiration just under that and see if the potential ROI looks appealing to you.

App: Toms Option Tools

Toms Option Tools scan the markets for bullish and bearish trade opportunities using our proprietary scans and strategy algorithms. TTR Darknet finds bullish entries based on triple stack channel collisions. Money Calendar identifies seasonal patterns with at least 90% accuracy looking back 10 years. Weekly Cash Clock finds short term opportunities that last a week on average. Microcurrency Trader applies Darknet technology and moving averages to cryptocurrencies. Velocity Trader utilizes volume spike and Velocity indicators on custom stock lists. Quantum Scripts scans the markets for momentum acceleration signals and employs Quantum noise filters. Optimal Trader finds directional pre-earnings opportunities that are optimized for entry date, stock movement, and volatility surge. My Trades tracks the profit/loss of your trades, displays stock charts and risk graphs, creates new trades, and edits existing trades. Morning Report provides top 10 option rankings in 6 categories each day.


Disclaimers

Stock and options trading has large potential rewards, but also large potential risk.

You must be aware of the risks and be willing to accept them in order to invest in the stock and options market. Do not trade with money you cannot afford to lose.

This is neither an offer to buy/sell/ or recommend a particular stock or option.

Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been actually executed, the results may have under or overcompensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with hindsight.

No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

Disclaimer of Warranties and Liabilities Tom Gentile and TomsTradingRoom, LLC including employees, consultants, and editors (“Publisher”) cannot and do not warrant the completeness or accuracy of the content found in our areas, or its usefulness for any particular purpose.

Tom Gentile and TomsTradingRoom, LLC also make no promises that our content or the service itself will be delivered to you uninterrupted, timely, secure, or error-free. Under no circumstances will Tom Gentile and TomsTradingRoom, LLC be liable for direct, indirect, incidental, or any other type of damages resulting from your use or downloading of any content on our site.

This includes, but is in no way limited to, loss or injury caused in whole or in part by our negligence or by anything beyond our control in creating or delivering any portion of Tom Gentile and TomsTradingRoom, LLC.

You are agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that Tom Gentile and TomsTradingRoom, LLC will not be liable for any I, investment decision made, or action taken by you, or others based upon reliance on news, information, or any other material published by Tom Gentile and TomsTradingRoom, LLC.

Tom Gentile and TomsTradingRoom, LLC relies on various sources of information that we believe to be accurate and reliable. However, we make no claims or representations as to the accuracy, completeness, or truth of any material contained on our site.

Tom Gentile and TomsTradingRoom, LLC are educational portals, providing content for educational and informational purposes only. Neither Tom Gentile nor TomsTradingRoom, LLC are a broker/dealer. Investors need a broker to trade stocks and options and must meet certain requirements. All securities, futures, and investments data and ideas are offered to self-directed investors. All prices in USD unless noted otherwise.

A full disclaimer can be found here:  http://www.tomgentile.com/legal_disclaimers.html.

Sign Up Now for Free Education!