FB, GOOG and other social media ad-related companies had a nasty gap down on 10/21 when SNAP announced a huge earnings miss blaming it all on loss of ad-revenue due to IOS 14 privacy related changes. FB did beat eps estimates a few days later and I put this trade based on support around $325. But it kept dropping all the way down to $310 before recovering. The recent reorg and Meta news has turned the tables in our favor and this trade looks pretty decent at this point. Congrats to those who were able to get the trade at lower strikes!

Pretty crazy ride on this trade. I took this trade right after earnings after seeing price stabilizing around $325. However, the bottom literally fell out from under FB and it dropped all the way to $308 in the coming days. Although, we did close the trade out for a full profit today, but this highlights an important thing. I take all my trades based on the simple rules that I have laid out in my book. Some trades work out in my favor and some don't. I am not trying to pick all winners here (nor does any successful trader). The goal always is to have winners > losers in each expiration cycle. That is all it takes to become a profitable trader!