November 3, 2016  Trade Alert -  Foxy Facebook  Portfolio

We should buy back our deep in-the-money puts today to avoid assignment.  Rather than closing out the calendars, we will buy a couple of week’s time in hopes the market recovers somewhat from its disappointment with the company’s guidance:

 

BTC 4 FB 04Nov16 125 puts (FB161104P125)

STO 4 FB 18Nov16 125 puts (FB161118P125) for a credit of $.33  (selling a calendar)

 

BTC 2 FB 04Nov16 126 puts (FB161104P126)

STO 2 FB 18Nov16 126 puts (FB161118P126) for a credit of $.44  (selling a calendar)

 

BTC 3 FB 04Nov16 127 puts (FB161104P127)

STO 3 FB 18Nov16 127 puts (FB161118P127) for a credit of $.63  (selling a calendar)

 

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

 
Happy trading.

 

Terry