PB2BO Play in FB

[Steven Place]

Facebook broke out of a multiple bottom, and the sellers had like 5 chances to breakdown the stock. It has since seen a strong move on volume, and is now pulling back to previous resistance which is potential support.

Not sure the bottom is in yet so I’ll scale in.

Buy to open HALF SIZE Apr 80 calls @2.48

ADD to the trade at 2.15

If filled on second half of the trade, scale out at 2.40 to reduce basis then potentially rebuy at 2.15.

SPREAD the trade if we hit 82.

[Steven Place]

Quick flip on the second half.

As per the trade plan above, added second half at 2.15. FB then bounced and I bailed at 2.40. Will re-buy at 2.05 if we get another dip.

[Steven Place]

I’m going to ROLL the calls to a higher strike.

This will take some cash off the table, reduce my directional risk, decrease my odds of success (assuming I hold to expiration but I won’t) and increate my theta.

Sell to close Apr 80 calls at 3.50
Buy to open Apr 82.50 calls at 2.25

FB could be done going up here, but given the amount of time I have left I want to have some kind of bullish “kicker” incase the stock decides to breakout big.

[Steven Place]

I’m going to take profits here. The stock is up 7 days in a row, it’s up 8.5% in those 7 days, and it’s had 4 consecutive days above the Bollinger band. Going to take profits and wait for a pullback for a new long entry.

Sell to close FB Apr 82.50 calls at 3.90

[Author]

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