Call Spread on FB on 1/16/2014

Bullish Cup & HandleFacebook (FB) operates as a social networking company worldwide.

It builds various tools that enable users to connect, share, discover, and communicate with each other on mobile devices and computers. The company’s Facebook Platform is a set of development tools and application programming interfaces that enables developers to integrate with Facebook for creating social apps and Websites.

As of December 31, 2012, it had 1.06 billion monthly active users and 618 million daily active users. The company has a strategic partnership with Trend Micro Inc. for educating and protecting users' digital lives against malicious sites and malware.

Shares have formed a bullish "cup & handle" and higher share prices are expected for this stock.

52-Week Trading Range:  $22.67 - $58.58

Last Trade: $57.20

Here is the trade:

Trade

  • Buy 1 February $57.50 Call at $4.00
  • Sell 1 February $62.50 Call at $2.10
  • For a net debit of $1.90

Profit/Loss Analysis

  • Breakeven at $59.40
  • Maximum profit is $310.00 at strike of $63.00
  • Maximum loss is ($190.00) at strike of $57.00

Closing Summary

  • Sold 1 February $57.50 Call at $5.35
  • Bought 1 February $62.50 Call at $2.35

Position closed on 1/30/2014 at price of $3.00 with a 57.89% gain in 14 days.

Updates

1/30/2014 9:35:08 AM

We are taking profit on FB call spread.

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