Facebook (FB) earnings this Thursday, July 26.

Discussion in 'Options' started by diaoptions, Jul 25, 2012.

  1. Facebook (FB) earnings this Thursday, July 26.

    I think a 1 strike OTM weekly strangle might be good. I figure this will be the most anticipated earnings this quarter, the press will be all over this one.

  2. hajimow


    buy shares now and sell it at 29.30 before earning
  3. I will update tomorrow at 3:30pm EST with exact trade.

  4. Ratio Spreads?
  5. Haven't decided yet. The strangles are very expensive so I might go with just calls or some sort of call butterfly - 29/31/33.

  6. Was looking at a long 28/26 P back spread, didn't execute it though
  7. pessmism just got priced in with znga blowing up/down whatever.. i'm guessing there not going to miss ... the implied vol on these weeklys are sick! i can't even believe it.. near 200..
  8. your basically betting on the stock getting cut in half or something thereof with a trade like that..
  9. the implied move is like 3.20 dollars.. implying a 11 percent move.. i'm thinking a three dollar wide butterfly ATM ... My intuition tells me nothing about this one.. i've heard though when vol is high sell. when vol is extremely high BUY.. but i just think there is to much baked into the options.. most conservative play is a wide strike butterfly to simulate a short straddle with limited risk
  10. will be interesting to see what this sympathetic pre-earnings move will do to those options. will the IV come out any, or will it hold for the release, and price in *another* $3 move?

    was looking at the 27/28/29 going into the close, didn't get it. did manage to jump in out of ZNGA on the dead cat bounce AH for a dime, so i'm thinking i'll leave any FB 'earnings' play at that, and walk away happy.

    maybe a 25/27/29 tomorrow, but not sure, this pre-move really tosses a wrench in the works, as my negative bias has been pre-empted, and left me wondering where the next $2-$3 move will juke or jive going into friday.
    #10     Jul 25, 2012