FB Exposes Records

$FB has supposedly exposed some records. If history repeats itself we can bet on panic buying to set in and history does repeat itself. $FB opened flat and then took off premarket and didn’t look back.

To take advantage of the situation we’re going to sell a put vertical. We were only able to get filled near the close of market due to the up move but we’re in.

SELL -1 VERTICAL FB 100 17 MAY 19 165/160 PUT @1.14 LMT

We have a GTC in for 25% and plan to be out before expiration.

No time to #BTFD so just #BTFS

FB Strangle Trade

This is another example of using small sized strangles as an income strategy.  This is an Aug 27/39 Strangle in $FB.  The trade was opened on 6/27 for a .95 and .70 credit on the two strikes.  Implied Volitility for August was at 62%.  These two strikes were selected at the 20 Delta level.  The area on the risk graph is very wide giving a good chance for being successful.  One week after putting the trade on there’s approximately a 30.30% gain due to Theta and a 5% reduction in volatility.