May 10, 2016  Trade Alert -  Foxy Facebook  Portfolio

Gamma is much higher than net delta, so we will be negative net delta if the stock goes up another dollar:

 

BTC 2 FB 13May16 119 calls (FB160513C119)
STO 2 FB 20May16 121 calls (FB160520C121) for a debit of $.47  (selling a diagonal)

BTO 1 FB 16Sep16 125 call (FB160916C125)
STC 1 FB 15Jul16 115 call (FB160715C115) for a credit of $2.30  (buying a diagonal)

Be prepared to change these price limits by $.05 or more in order to get an execution.

 
Happy trading.

 

Terry