Stock / Symbol: Facebook Inc / FB;
Option Strategy: [private_monthly]iron condor[/private_monthly];
Price at trade post: $108.12;
Reasoning: I'm expecting some stability in FB and using an [private_monthly]iron condor [/private_monthly]that is just a bit beyond FB's expected deviation by March expiration. The current Greeks on this slighly negative delta trade are: -2.2 delta, 1.7 theta, and -2.5 vega. The probability of success on this trade is 89%
Trade Details:[private_monthly]
STO -1 FB Mar16 117 call
BTO 1 FB Mar16 119 call
STO -1 FB Mar16 97 put
BTO 1 FB Mar16 95 put
for a min net credit of $0.24 per contract (day order, limit order). The mid is currently at $0.27.
Requirements:
Cost/Proceeds ($24)
Total Requirements $176
Estimated Commission $6
[/private_monthly]
Max Risk: $176
Max Reward: $24 or 13.6% [private_monthly]between 97 - 116[/private_monthly] by Mar 18th
Profit Range: [/private_monthly]$96.80 to $116.20 by Feb 19th[/private_monthly]
Suggested Downside stop: 98
Suggested Upside stop: 115
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