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Put strategy may unlike Facebook

Chris McKhann (

Facebook has been pulling back in the last two sessions, and one trader is positioning for further downside.

optionMONSTER's systems detected the sale of 5,000 January 25 puts for the bid price of $0.90 against open interest of more than 23,000 contracts. At the same time, the trader bought 5,000 June 25 puts for $3.15 in volume that was above that strike's open interest of just 1,403 and therefore a new position.

The trade could be a calendar spread , which would be take a maximum profit if FB is right around $25 at expiration. It is also possible that this is a roll, with the trader selling the January puts and moving the position to June for more time. The latter could well be a hedge against a long position . (See our Education section)

FB was down fractionally yesterday at $26.75, its lowest close since the end of November. The social network's shares were testing resistance at $29 last week, their highest levels since late July, before falling on Friday.

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