Schaeffer's Top Stock Picks for '25

Another Round of Layoffs Announced for FAANG Giant

META has added over 65% in the last three months

Digital Content Manager
Mar 7, 2023 at 10:08 AM
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Meta Platforms Inc (NASDAQ:META) is reportedly laying off even more employees. The social media giant is expected to cut thousands of jobs this week, after letting go of more than 11,000 people only a few months ago. According to Bloomberg, financial targets are driving this new round of layoffs. META was last seen up 1.6% to trade at $187.92.

The security recently pulled back from a post-earnings bull gap, which brought it to its highest level since early June. The $169 level contained the pullback, while the equity's 30-day moving average continues to guide it higher. During the past three months, META has added 65.3%.

Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day call/put volume ratio of 1.99 sits higher than 80% of readings from the past 12 months. This suggests calls have been getting picked up a much quicker-than-usual clip.

Now appears to be a good time to weigh in on the security's next move with options, as premiums are attractively priced. This is per Meta Platforms stock's Schaeffer's Volatility Index (SVI) of 41%, which ranks at the low 15th percentile of readings from the last 12 months.

Furthermore, the security's Schaeffer's Volatility Scorecard (SVS) of 89 out of 100 means META has exceeded option traders' volatility expectations over the past year.

 
 

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