I hope some of you followed in holding some calls over Earnings. We started out trading this week’s 102 calls since Monday when they were trading at $3.30. To minimize risk I recommended on twitter to sell enough in order to hold some freebies over Earnings. Yesterday afternoon there was ample time to sell some between $4.00 and $4.20. With FB trading at 108.5 in pre-market, at time of writing it looks like it’s going to pay of quite well.
We started covering FB since September and have been able to trade weekly options on nearly every pullback, as we called it out on twitter. The initial 30 and 60min charts on which we saw larger patterns forming all have reached their targets.
We also looked at the daily chart, on which we saw a possible target of a PRZ starting at 107.26. To calculate the complete PRZ range you could have used the calculator from the start of October to calculate these targets.
Below, the chart and the calculated PRZ on daily timeframe.
For today, my strategy on FB will be most likely to sell 1/2 of my remaining calls on the open, and then set a stop on the rest. If we get an intraday pullback then there might be an opportunity for an additional day trade.