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Full Time Profits, July 13th, 2017 – FB

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While the Dow and S&P are breaking to new highs, I think the better market to watch is the Nasdaq. Large cap tech got hit pretty hard this summer, with indications of distribution. I want to see how price acts at 142.50 and whether it’s rejected or accepted.

Trade #1: FB

The stock has begun a pre-earnings rally. As the stock moves higher I am ready to short some call spreads… odds are the stock will “price in” good news into earnings so I’m comfortable taking some of that risk.

Trade Setup

Expected Price: 160

Sell to Open FB Aug 170/175 Call Spread 

Tier 1: Open at 0.73, Close at 0.23

Tier 2: Open at 1.03, Close at 0.73

No Tier 3 Until After Earnings

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