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.