Stock Symbol: FaceBook / FB;
Option Strategy: [private_monthly]diagonal call spread[/private_monthly];
Price at this post: $80.65;
Reasoning: Putting on a slightly long delta trade on FB here with the idea of generating weekly / monthly income. Current greeks are: 23.5 delta, 2.8 theta, and 23.1 vega
Trade Details:[private_monthly]
BTO 1 FB Jan16 80 call
STO 1 FB Mar15 82.5 call
for a max net debit of $8.20 per contract (day order / limit order). Current mid is $8.05. Try for the mid +0.02. Ok to enter trade tomorrow if not filled today.
Requirements:
Cost/Proceeds $820
Option Requirement $0
Total Requirements $820
Estimated Commission $3
[/private_monthly]
Max Risk: $820
Max Reward: $150 or 18% (at current volatility level) [private_monthly]at 82.50[/private_monthly] by March 20th
Profit Range: $79.50 - $87 by March 20th
Suggested upside stop: @ $84.50
Suggested downside stop: @ $70
