Rocket Equities & Options Report 04-28-21 Update
Trade Clarification - FB $312.50 - $310.00 Credit Call Spread - April 28, 2021
I sent out the earlier recommendation and it mistakenly called the trade by the wrong name, this should be a credit call spread. We are receiving a credit when placing this trade of about $1.00.
FB has earnings tonight and the implied volatility for the options expiring Friday is sitting at a $14.38 move in either direction, representing a 4.69% move. We will look to absorb some of the premium to the upside. FB just traded from $253.50 on March 4th to currently trading at $306.30. That's a 20.82% rise in less than the last 2 months. FB traded higher overnight on the GOOG numbers, yet gave back most of those gains on the open.
Both options expire Friday April 30th.
Sell FB $310 Call
Buy FB $312.50 call
Our max profit is around the $1.00 credit we get upon initiating this trade. Our max loss is $1.50 if FB closes Friday above $312.50. This is a bearish trade and our max profit is achieved if FB closes Friday below $310. Don't get less than a $0.85 credit for this trade. It's trading right at a $1.15 credit right now, but can swing $0.05 to $0.10 quickly.
Stay tuned for updates!
FB has earnings tonight and the implied volatility for the options expiring Friday is sitting at a $14.38 move in either direction, representing a 4.69% move. We will look to absorb some of the premium to the upside. FB just traded from $253.50 on March 4th to currently trading at $306.30. That's a 20.82% rise in less than the last 2 months. FB traded higher overnight on the GOOG numbers, yet gave back most of those gains on the open.
Both options expire Friday April 30th.
Sell FB $310 Call
Buy FB $312.50 call
Our max profit is around the $1.00 credit we get upon initiating this trade. Our max loss is $1.50 if FB closes Friday above $312.50. This is a bearish trade and our max profit is achieved if FB closes Friday below $310. Don't get less than a $0.85 credit for this trade. It's trading right at a $1.15 credit right now, but can swing $0.05 to $0.10 quickly.
Stay tuned for updates!
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