NEW YORK -- It hit late Friday, but a massive trade is looking for a rally in Facebook (FB).
OptionMonster's tracking programs showed that a big player bought 34,000 July 67.50 calls for $1.08 and sold the same number of July 70 calls for 64 cents. That's a cost of 44 cents per contract, or $1.5 million in total.
This bullish call spread now controls a move between $67.50 and $70 on 3.4 million shares through July expiration, as I mentioned on CNBC's "Fast Money" show. So the initial outlay can expand to as much as $8.5 million.
Owning calls locks in the price where the investor can buy the social-media stock, while selling them obligates him or her to sell shares if they climb to a certain level. Combining the two cheaply captures a move between the two strikes.
The call spread was the largest transaction in the entire option market on Friday. Facebook shares rose 1.37% to $61.35 in the session.
Overall option volume in the name was triple its daily average for the last month. Calls accounted for a bullish two-thirds of the total.