JAN 2021: FB $260 – $265 Bull Call Spread
Stock
FB
Trade Structure
$260- $265 Call Spread
Trade Date
1/29/2021
Price Paid
$250
Expiration Days
03/12/2021
THIS IS A DELAYED TRADE FOR EDUCATIONAL PURPOSES ONLY.
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Trade Rationale
Another awesome post-earnings trade. FB beat earnings and fell sharply. It got dragged down further by the sell-off this week, giving us a great entry at $260. Frankly, support is at $265, so this will turn out very nicely. Again, watch this how it plays out along with AAPL trade we took on the same day.
Trade Selection Criteria
Overall market movement
We had a nice pullback in the entire market which allowed us to put on 18 trades this week.
No Earnings or Significant News
Earnings are behind us and were announced on 1/27
Bollinger Bands outside Keltner Channels
Bollinger bands are clearly outside the Keltner Channels.
RSI Analysis
This is a post earnings trade. Our regular indicators don’t apply here.
ADX Analysis
This is a post earnings trade. Our regular indicators don’t apply here.
Trade Analysis
Analysis will be updated when we close this trade.
Trade Outcome
PENDING
Profit/Loss
$N/A
Beginning Account Balance
$10,600
Ending Account Balance
$N/A
