10/14/2017 weekly option ideas

Facebook: FB

• long call spread Dec Monthly 165~170 with $3.35 (Last Friday's close), any price between $3.3~$3.5 is acceptable 
• The potential gain is $5-$3.5/$3.5 =  42.8% if price close above $170 when option expire
• The potential loss is 100% if price close below $165 when option expire
• break even price: 168.5 
• why choose $170?
• the projection price of facebook for Dec is around $180, choose $170 strike gives more room for fault tolerance

Update on Apple and Celgene option tade

Apple: long Nov 145~150 call spread now at $4.08, any entry within $3.8 is above water now. There is still around 1 month time for the trade to work out,  I try to sweep the gain of $1.2 per contract. 

Celgene: long Dec 125~135 call spread now at $7, any entry around $7.5 is under water now.  There is still 2 months for the trade to work out, no need to be panic for cutting loss yet.


Note: my personal opinion is not for investment, but for education and illustration.