Stock Symbol: FaceBook / FB;
Option Strategy: [private_monthly]call spread + put spread[/private_monthly];
Price at this post: $85.67;
Reasoning: Putting a trade on FB here to attempt to benefit from increasing volatility as Facebook's earnings day approaches. Current greeks are: 5.2 delta, -4.6 theta, and 7.0 vega
Trade Details:[private_monthly]
BTO 1 FB Aug16 90 call
STO 1 FB Aug16 95 call
BTO 1 FB Aug16 80 put
STO 1 FB Aug16 75 put
for a max net debit of $2.25 per contract (day order / limit order). Current mid is $2.20. Try for the mid +0.02.
Requirements:
Cost/Proceeds $225
Option Requirement $0
Total Requirements $225
Estimated Commission $6
[/private_monthly]
Max Risk: $225
Max Reward: $280 or 124% (at current volatility level) [private_monthly]under 74.50 or over 95.50[/private_monthly] by Aug 21st
Profit Range: under $77.75 or over $92.40 by Aug 21st
Suggested upside stop: NA
Suggested downside stop: NA
