As Wall Street gets ready for Facebook Inc. (NASDAQ:FB) to report its Q4 2012 and full year results on January 30 after the close, investors remain bullish as they look forward to learning about the company?s quarterly progress in mobile advertising.
On Monday, the options marketplace was already preparing for the report by showing a bullish feel for the company as Feb 34 calls, Feb 35 calls and Feb 36 calls all made the most actively-traded call list.?
The bulls were still hanging around on Tuesday and according to Dow Jones Kaitlyn Kiernan, “the cost to employ a neutral trading strategy rose, implying an 11% move for Facebook shares” after the company’s Wednesday report.?
Joe Kinahan, chief derivatives strategist at TD Ameritrade, also said of Tuesday’s Facebook options activity, “The options flow we?re seeing shows most of the speculating is on the upside, not the downside, with most downside buying more protective. There doesn?t seem to be much speculation that Facebook will miss [earnings] expectations on the downside.?
Wednesday’s report will represent the company’s third one since going public in May 2012.
Expectations are high for the quarter and in this first month of the new year, the underlying stock is up?more than 15 percent.?
Analysts have estimated 15 cents per share earnings on $1.51 billion in revenues. This compares to last year’s fourth quarter numbers that had the privately-held Facebook earning $302 million on $1.13 billion in revenue.?