Scaling Calendars in FB

[Steven Place]

The stock is up big on earnings and already had a second day higher. It’s time to deploy our first round of calendars. If you’ve never seen this strategy used before, go through past income calendars we’ve put on in individual stocks.

Buy to Open FB Mar/Apr 110 put calendar @1.16

If FB hits 117 we will add the 115 calendar

If FB hits 122 we will add the 120 calendar

If FB hits 125 we will buy some calls to hedge short deltas.

I’m not worried about downside yet but general idea is to scale in similarly.

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[Marco]

Filled at 1.17 on the first tier.

[Steven Place]

Spread’s currently at 1.36, which is a 17% gain over the course of 2 days. Take profits here, and if FB rips back to 115 we will reenter.

Sell to close FB Mar/Apr 110 Put Calendar 1.36 or higher

[Marco]

Filled at 1.12 on the 105 march – april put calendar.

[Marco]

Closed the 110 calendar at BE, closed the 105 at 1.41

[Author]

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