Following Meta Platforms Inc's (NASDAQ:FB) disappointing quarter, Market Rebellion co-founder Pete Najarian decided to buy some downside insurance on his Meta stock position.
"Their focus is gone," Najarian said Tuesday on CNBC's "Fast Money Halftime Report." "They are not the Facebook they have been in previous quarters where they've absolutely crushed it."
Najarian noted that the main problem with the quarter was Meta's lack of focus on what has worked in the past. The company shifted its focus to the metaverse and incurred a loss from it, he said.
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Najarian has been holding Meta shares since it went public and he's not ready to cut his position completely after one terrible quarter. Instead, he decided to buy $235 strike puts expiring near the end of the month.
"The reason I did that was that at least gives me a stop out," he said. "If it continues to go lower I can sell it at that price."
With downside protection in place, Najarian plans to hold his Meta shares and wait to see if "there is any chance at all that this is a company that can turn itself around."
"If not, I can just exercise those puts and be gone," Najarian said.
FB Price Action: Meta has traded as low as $224.01 and as high as $384.33 over a 52-week period.
The stock was down 1.84% at $220.76 at time of publication.
Photo: Book Catalog from Flickr.
