Michael Howe outlines an options strategy for Meta shares — CNBC

Michael Howe, in a CNBC article, outlined an options strategy for Meta shares that предусматривает keeping quotations in the range of $700 to $900 until the contracts expire at the end of October, followed by further growth by the end of the year.

Expected volatility

According to Howe's estimate, the one-month implied volatility of Meta options is about 44%. This is roughly one standard deviation above the average level of 37% over the past year. In the author's view, this indicates relatively high premiums on short-term options.

Howe proposes selling an out-of-the-money call option and put option expiring at the end of October, specifically on October 30. The premium received can be used to partially finance the purchase of a long-term call option expiring in January. The author explains that short-term options lose time value faster.

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Long-term bet

According to Howe's assessment, this structure may reduce the out-of-pocket cost of the January call option and provide a position for Meta shares to rise into the new year. At the same time, for this scenario, it is preferable that the share price remains within the specified range until the October expiration.

The article also mentions Meta's new AI-powered consumer device, Muse Charm, lighter virtual reality headsets, and new audio smart glasses. In addition, according to CNBC, the Muse AI agent is receiving integrations with Walmart, Best Buy, and Gap. The disclosure states that Tidal owns or holds all securities mentioned in the publication.

CNBC emphasizes that the opinions expressed in the article belong to its author and do not constitute investment advice.