By
Rick Ackerman |
Stock Markets | Nov 19, 2012 07:25AM GMT |
I’m tracking 24 Mar 30 Facebook (FB) calls acquired for an average 0.375. Continue to offer 24 March 33 calls short against them for 0.50. If successful, we’ll have legged into a vertical bull spread that cannot lose.
The best we could do would be to make $7200 on the position if Facebook is trading $33 or higher come March expiration. And the worst? That would be with the stock below $30, which would still produce a trading gain of $300. The stock, meanwhile, looks bound for the 25.36 target of the pattern shown, having blown through its ‘p’ midpoint sibling at 22.12 on Friday.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Related Articles