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Meta Platforms: Take Advantage Of The Trading Range, 26% Yield

May 03, 2022 11:52 AM ETMeta Platforms, Inc. (META) Stock6 Comments
Binary Tree Analytics profile picture
Binary Tree Analytics


  • Meta stock has been consolidating in the $180-220 range.
  • The higher interest rate environment will keep the stock grounded for the rest of the year with the infamous gamma squeezes now behind us.
  • Our proposed options trade gives an investor the ability to extract a 26% annualized yield from this range bound view.
  • This article covers Options from our suite of products - we focus on macro portfolio allocation, CEFs, and yield producing options strategies, targeting overall returns of 9%+.

Facebook Covers Sign At Menlo Park Headquarters

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After stumbling by more than -30% in February when it announced disappointing results, Meta stock (FB) has been consolidating in the $180 - $220 range. On the back of a hawkish Fed and substantially higher yields, Meta

This article was written by

Binary Tree Analytics profile picture
With a financial services cash and derivatives trading background, Binary Tree Analytics aims to provide transparency and analytics in respect to capital markets instruments and trades.We are reachable at BinaryTreeAnalytics@gmail.com_____________________________http://www.BinaryTreeAnalytics.com

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (6)

Started my position @200 and completed it @ $175. Reading this article with a cost basis of $191+ makes me wonder how I could have miss evaluated FB so grossly. I'm not a fan of the company or social media for that matter however, I felt this was a money making opportunity and took it. Time will tell--good luck to all.
Mick Research profile picture
"From a risk perspective the most concerning for an investor is Scenario 3, but then again the breakeven level on a stock appreciation scenario is approximately 32% higher than the current spot level, and given the current Fed tightening environment it is highly unlikely that Meta is going to rocket back to its 2021 levels in the near future."

Why? We are still 7 months far away. Anything could happen. The stock tanked in less than 2 months, why can't it go up 30% in half year?
@Mick Research I agree. I would much rather short puts near the current spot. I am currently short the June 17 205 put at $12.10. I recently closed out a June 17 185 put that I sold at $14.75 and bought back at $2.65. I have no problem if the stock gets put to me as it is one of the cheapest tech stocks out there.
T'pee profile picture
@Mick Research exactly, the unlikely is possible and I can only hope that those who follow this advise understand what it means to have to cover 100 shares which are on their way up, you are not getting this much premium for nothing.
JosephCortes profile picture
Facebook “Meta” is clearly a $340. / $380.00 value stock at least at the moment. And I see FB reaching new highs like never before by mid 2023 - 2024. So be smart, loyal and patient and you will be happily rewarded.
gary kilgore 123 profile picture
@JosephCortes, I sure hope you are right! I sold out of the money puts on FB before it went over sold.
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