DailyPlay – Opening Trade (META) – October 10, 2024

META Bullish Opening Trade Signal

Investment Rationale

Although META is currently overvalued, it trades at a discount relative to its industry peers and is expected to achieve faster growth in both revenue and earnings going forward. Additionally, its higher profitability suggests further upside potential. Recently, META broke out of its trading range, reaching our target of $600 before pulling back slightly ahead of its highly anticipated earnings report at the end of the month. We expect the stock to retest the $600 level before the earnings announcement, and as part of our strategy, we will employ option contracts expiring prior to the report.

META – Daily

Trade Details

Strategy Details

Strategy: Long Call Butterfly

Direction: Bullish Call Butterfly

Details: Buy to Open 4 META October 18 $585/$600/$610 Call Butterflies @ $4.53 Debit per Contract.

Total Risk: This trade has a max risk of $1,812 (4 Contracts x $453) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $453 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher.

1M/6M Trends: Bullish/Bullish

Relative Strength: 9/10

OptionsPlay Score: 167

Stop Loss: @ $2.27 (50% loss of premium)

View META Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Wednesday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View META Trade