Once again buying the weekly calls on FB on any bullish PRZ on small TimeFrames proofed to be very profitable.
In the weekend post I mentioned I would stick to this strategy, even though FB has reached some targets on the large TimeFrames.
From the Friday reached targets, FB pulled back in an AB=CD pattern today right at the open, during which we saw yet again Bullish optionflow. Calls were being bought in far larger quantities then the Puts.
Called it out on twitter, and subsequently bought weekly 100 calls at $2.55 right at the completion of the AB=CD
sold 1/4 position just before 10AM for $3.15, when it got close to the point X on a 2minute chart, raised the stop, and just let it ride rest of the day.
Midday’s pullback came within a few pennies of a PRZ; good place to enter for another trade.
By End of Day the 100 calls were trading just over $4.00, I’m holding a 1/4 position overnight.
Not much to say on SPY; it also pulled back to a bullish PRZ at the open, bounce just a bit, but just frustrating lateral move from there.
Call buying outpaced Put buying however.