Update to FB Trade

FB reports earnings tonight, and we have some bear call spreads that are a little too risky to hold into earnings.

We are going to roll them out in time and up in price to give us a buffer.

The current 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

The price of the spread is currently 1.40, so a small drawdown.

The short option is 3% higher than current price. Here is the earnings movement for FB:

While the past few events have been negative, it’s still not a good “comfort zone.”

Here is the adjustment:

Buy to Close FB Aug 170/175 Call Spread @1.40

Sell to Open FB Sep 175/180 Call Spread @1.09

We still have our third tier planned add after earnings for the stock.

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