Options Trader Makes Million-Dollar Bet Against Meta Into Earnings

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Options Trader Makes Million-Dollar Bet Against Meta Into Earnings
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One trader is laying out more than $1 million to bet that Meta is due for a big post-earnings drop

, the company formerly known as Facebook, will announce its first-ever quarterly revenue drop when it reports earnings after the bell Wednesday.

The social media giant is in a transition period, aiming to make strides toward becoming a company firmly rooted in the metaverse, with augmented and virtual reality a big part of its push. The transition could take a while, and the options market is betting that this earnings report in particular will reflect Meta's bumpy ride so far, in a year where the stock has been cut in half.

"The options market is implying a move of about 11% [in either direction] after they report earnings, that's higher than the 8.7% that the company has averaged over the last eight quarters.

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