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Traders Liking Facebook Inc (FB) Pick Up Call Options As Stock Rallies

Facebook Inc (NASDAQ:FB) – Trading traffic in upside call options that expire four weeks from now suggest some traders are positioning for shares in Facebook Inc (NASDAQ:FB) to extend gains in the near term. Shares in Facebook Inc (NASDAQ:FB) increased as much as 2.8% in the early going on Thursday to touch an intraday high of $24.84, helped higher in part by positive analyst comments. The Jul 26 ’13 $24.5 strike calls are active for a second session today, with more than 5,500 calls in play versus open interest of 4,121 contracts. Time and sales data suggests the bulk of the $24.5 strike calls were purchased at a premium of $1.10 each during the first 10 minutes of the trading session. The contracts start making money at expiration next month if shares in Facebook Inc (NASDAQ:FB) rally another 3.0% over today’s high of $24.84 to exceed the effective breakeven point at $25.60. Yesterday, it looks like one or more traders snapped up more than 2,000 of the Jul 26 ’13 $24.5 strike calls for an average premium of $1.00 each. Facebook Inc (NASDAQ:FB) options are among the most actively traded today as measured by volume, with upwards of 115,000 contracts traded by 11:50 a.m. ET versus the stock’s average daily volume of roughly 141,000 contracts.

Facebook Inc. (FB)

New York Community Bancorp, Inc. (NYSE:NYCB) – Options on New York Community Bancorp, Inc. (NYSE:NYCB) are more active than usual today, with volume rising to 1,800 contracts during morning trading versus the stock’s average daily volume of around 600 contracts. Shares in New York Community Bancorp, Inc. (NYSE:NYCB) are up 1.15% on the session to stand at $14.04 just before midday in New York. The most actively traded options contracts on New York Community Bancorp, Inc. (NYSE:NYCB) today are the Oct $15 strike calls, with volume of around 1,550 lots changing hands versus previously existing open interest of 654 contracts. Most of the call options appear to have been purchased by one strategist for a premium of $0.15 each. The upside calls may be profitable at expiration in October in the event that New York Community Bancorp, Inc. (NYSE:NYCB) shares rally 8.0% over the current price of $14.04 to top $15.15. The stock last traded above $15.15 back in July of 2011.

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