Options Traders Eye 'Jade Lizard' as Meta Faces Trial
CNBC Options Action columnist Michael Khouw says options traders are using the "jade lizard" strategy on Meta Platforms shares as opening statements begin in a major Oakland trial alleging the company designed Facebook and Instagram to hook young users. The litigation backdrop includes a theoretical $1.4 trillion damages figure that has circulated, more than 3,000 personal-injury suits consolidated in a federal MDL, roughly 1,300 school-district claims, a nearly $1 billion New Mexico judgment and a $6 million bellwether loss in Los Angeles. META shares are down sharply from their highs (off more than 30% year-over-year) and the company’s market value has fallen by over $600 billion in the past 12 months. Khouw outlines the jade lizard (sell OTM put + sell OTM call spread) with a September 25 expiration to capture elevated implied volatility while avoiding upcoming earnings and most of the trial window.
- •Opening statements began in Oakland in a trial where 29 state attorneys general accuse Meta of designing Facebook and Instagram to hook young users.
- •A theoretical $1.4 trillion damages figure has been cited; related litigation includes 3,000+ personal-injury suits in the federal MDL and ~1,300 school-district claims, plus a nearly $1 billion New Mexico judgment and a $6 million bellwether loss in Los Angeles.
- •META shares are down more than 30% from the highs of a year ago and Meta's market capitalization has fallen by over $600 billion in the past 12 months.