$FB Options Action trade - dan

28 sep - if you read dans write up on his website on this trade you will see he mentioned that he is not buying the stock here to do this trade. that was not made too clear in the Facebook clip . so like i said before, just because you see it on air does not mean there is money behind it.. so its a bit deceiving when he says "i bought this and i sold that"

Buy the Jan 24/27 call ratio for zero (buy one 24, sell two 27's)

I like ratio spreads, they have a very high probability of being profitable, i prefer to do them in a series of monthly ratios vs going out 3-4 months. this can also be used against an ITM call not just stock. what scott does not do a good job explaining with useless comments of "the options math is against you" is that you will not see those full profits till the Jan opex...since you need the 27short calls to decay, they will more that offset the gain of the 24call in the near term..so be prepared to wait 3 months. see all of dans on-air trades in this google docs spreadsheet

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