Why the Original Meta Platforms Weekly Options Trade was Executed?
owner Meta Platforms Inc (NASDAQ: META)
was hit by a
record €1.2 billion ($1.3 billion) European Union privacy fine and given a
deadline to stop shipping users’ data to the US after regulators said it failed
to protect personal information from the American security services.
network giant’s continued data transfers to the US didn’t address “the risks to
the fundamental rights and freedoms” of people whose data was being transfered
across the Atlantic, the Irish Data Protection Commission said on Monday.
On top of
the fine, which eclipses a €746 million EU privacy penalty previously doled out
to Amazon.com Inc., Meta was given five months to “suspend any future transfer
of personal data to the US” and six months to stop “the unlawful processing,
including storage, in the US” of transferred personal EU data.
As well, Meta shares traded lower Friday after it showcased its AI
chips and supercomputer.
Platforms, Inc. is a US-based multinational technology company and 1 of the Big
5 US tech companies. It is a member of the FAANG group holding the first
position with its original name, Facebook.
Platforms, Inc life began in 2004 as a digital “face book” for Harvard
students. The company was founded by Mark Zuckerburg and a group of friends but
now only Zuckerburg remains. The company quickly grew and expanded into other
universities and then opened itself to the public in 2006. As of 2006, anyone
over the age of 13 can be a Facebook user which is the company’s primary source
of income. As of 2022, the company claimed more than 2.9 billion monthly active
Inc filed for its IPO on January 1st 2012. The prospectus stated the company
was seeking to raise $5 billion but it got so much more. The day before the IPO
execs announced it would sell 25% more stock than it had previously stated
because of the high demand. The company wound up raising more than $16 billion
making it the 3rd largest IPO in history at the time.
IPO valuation earned Facebook a spot in the S&P 500 in the first year of
its public life. Although its valuation has deteriorated in the wake of scandal
and consumer trends within social media, early investors were treated to gains
in excess of 1000% at the peak of the stock run. Mark Zuckerburg retained 22%
ownership in the company following the IPO, and 57% of the voting rights. As of
2022, those holdings were down to about 14% of the company and 54% of the
years, Facebook acquired a large number of apps and other businesses that
include but are not limited to Instagram and WhatsApp. The company changed its
name to Meta Platforms DBA Meta in 2021 to reflect its business and mission
better. The new name describes the metaverse and refers to the seamless social
interaction provided by Meta’s social media application universe.
develops digital applications that allow people to connect with family,
friends, businesses, and merchants through Internet connections. Applications
are available for mobile, PC, VR, and smart homes.
company’s primary operating segment is the Family of Apps. The family of Apps includes
Facebook and all the other digital applications. This segment produces
virtually all of the revenue which is in turn 97% advertising oriented. The
other operating segment is Reality Labs. Reality Labs develops and markets a
line of virtual and augmented-reality products.
The META Weekly Options Trade Explained.....
** OPTION TRADE : Buy META
JUN 02 2023 240.000 PUTS - price at last close was $3.15 - adjust accordingly.
Obviously the results will vary from trader to trader
depending on entry cost and exit price that was undertaken.
Entered the META Weekly Options (PUT) Trade on Monday, May 22, 2023, at 10:00, for $1.38.
Sold half the META weekly options contracts on Monday, May 22, 2023, at 3:51, for $2.25, a potential profit of 63%.
Holding the remaining META weekly options contracts for
further profit as the week progresses.
Don’t miss out on further trades – become a member today!
Why Meta Platforms Shares Are Falling…..
The ban on
data transfers was widely expected and once prompted the US firm to threaten a
total withdrawal from the EU. Still, the likely impact has now been muted by
the transition phase and the prospect of a new EU-US data flows agreement that
could already be operational by the middle of this year.
decision is the latest round in a long—running saga that eventually saw
Facebook and thousands of other companies plunged into a legal vacuum. In 2020,
the EU’s top court annulled an EU-US pact regulating transatlantic data flows
over fears citizens’ data wasn’t safe once it arrived on US servers.
didn’t strike down an alternative tool based on contractual clauses, their
doubts about American data protection quickly led to a preliminary order from
the Irish authority telling Facebook it could no longer move data to the US via
this other method either.
data-transfer curbs risk carving up the internet “into national and regional
silos, restricting the global economy and leaving citizens in different
countries unable to access many of the shared services we have come to rely
on,” Nick Clegg, Meta’s president of global affairs, and Jennifer Newstead,
chief legal officer, said in a blog post.
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