With Facebook (FB) treading water and looking rangebound, I am positioning to take advantage of Facebook having trouble making new all time highs over the coming few months.
FB number 6 market cap stock in US…hard to imagine them growing into their multiple ( nearly 80 P/E) anytime soon..law of large numbers applies.
Plus at its highs, Facebook was bigger than Berkshire Hathaway.
In my world, hard to imagine Mark Zuckerberg being bigger than Warren Buffett.
Also the short 115 strike correlates to the all time high of 115.09 on FB
TRADE IDEA
Sell FB April 115 calls
Buy FB April 120 calls
0.82 net credit
These are the regular monthly options that expire 4/15/2016
Margin requirement is $412 per spread.
Good Trading,
Tim Biggam