Registered: Mar 2004
07-27-12 05:50 PM
Quote from cactiman:
A lot of risk for $25 less commissions? You could tune in next week and watch FB short squeeze back up to 27!
FB seems to want to be above $23 so far, after all the bad news is already out.
So an alternative trade might be to Sell an August 23/22 Bull Put Spread for a $35 credit, with a Max Loss of $65.
If FB closes at 23 or above on August 17th you'd make +53.85%.
But I'm not doing either trade.
Will just continue praying for my Iron Condors...
People are buying FB now just for short squeeze reason. That happened when it bounced back from 22 to 24. It is over. Your trade idea is also good but I always sell naked and don't buy. I know it is not a good way of trading. I am more worried of your $20 part of your butterfly but I still believe you should be ok.