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Meta shares look 'iffy' into earnings. How to trade it

CNBC·Michael Khouw·about 1 month ago
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Meta heads into earnings Wednesday after the bell with the fundamentals case largely intact. Ad-pricing improvements and sharper targeting continue to drive roughly 30% year over year top-line growth — a number that commands respect at this scale. The options market implies a substantial 7.5% move by the end of the week. That's a lot for a company this big, but it's justified given the big moves Meta has seen following earnings recently (the stock moved more than 10% following earnings in three of the last four quarters). We've seen some big call buying lately. The June in-the-money 620 strike calls, for example, saw substantial opening buyers Monday. So did the May $675 calls, which cost substantially less and are more focused specifically on earnings.…

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