Pullback Trade in FB

[Steven Place]

One of the strongest stocks in the market is finally seeing some weakness here.

It’s got a gap fill at 90.85 and is right at its lower Bollinger Bands.

Here’s the trade, we’re scaling in as the momentum on the overall market is clearly to the downside:

Sell to open FB Sep 85/80 Bull Put Spread @.80

Add at 1.20

Add at 1.70

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[Steven Place]

Going to roll this out to October and double size.

Buy to Close FB Sep 85/80 Put Spread @2.33

Sell to Open 2x FB Oct 75/70 Put Spread @1.18

By doubling size it adds more max risk but also helps with the cost of the roll.

If the spread value goes down to .50 I will cut size in half with intent to re-add.

I’m not adding any more risk to this trade due to increased market vol.

[Steven Place]

Buying back half of the spread here at .50

I will re-enter that half at 1.20

[Steven Place]

Buying back rest of spread at .23

Buy to Close FB Oct 75/70 Put Spread @0.23

Will Reenter back at .80.

[Author]

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