CLOSING THE $FB Options Action trade - dan

20 oct - dan pulling the exit trigger early on this one for breakeven, here is a cut and paste from his site for his explanation www.riskreversal.com

Trade Update Facebook (FB): Closing Nov/Jan 22 Calendar For What I Paid

10:52 am EDT - October 19, 2012 By Dan

Trade Update Oct 19th, 2012 at 10:30am: Since initiating the Nov/Jan 22 Calendar Call Spread in late Aug FB has been all over the place, rather than playing for a bounce I decided to try to thread the needle a bit between the Nov Lock-Up Expiration and what I felt could be a late year/new year rally in the depressed shares.  Given GOOG’s commentary and results yesterday, I have significantly less confidence that FB has any near term fixes to what seems to be plaguing online advertisers as consumers shift computing habits towards mobile and away from the far more lucrative desktop.

Action: Sold to Close FB (18.97) Nov/Jan13 22 Call Spread at .45, what I paid for it.

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14 sep - options action revisiting this trade. i find in kind of odd to revisit this one since its a NOV dated trade at minimum, not setup for a quick payoff. several other trades out there that could be revisited for those "constant trade updates". note: if there are updates being posted on facebook, i refuse to go there. im not 16years old. here is the clip FB clip.. could have just summarized this segment as "keep holding" .. really going to have to hold to Nov to get that time decay going for you .

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31 aug - dan with a trade on Facebook on the show, heres the clip facebook clip . dan lays out his thesis pretty well, not exactly bullish on the name but likes the setup of the trade:

Buy the Nov/Jan 22 call calender for .45

his reasoning for chosing the Nov option makes sense. its a cheap way for a bullish position of the stock rebounds after the lockup. only thing i will add is that if it works like he wants and Nov option expires worthless and stock price is still in this area...then look to sell a DEC call option to bring it back to another calender spread.. hopefully there is still some premium in those DEC calls then..this will lower your cost basis even more.  see all of dans on-air trades in this google docs spreadsheet

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