Facebook - Trade Ideas

spunj

Administrator
Jan 24, 2019
157
1
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$FB is not doing well. I've posted two graphs which highlight its illustrious history. I'm not following earnings tomorrow so this is just a wild generalization from me. (as usual.)

I often trade using technical analysis first - and then - once things start breaking up or down I switch over to fundamental and macro analysis. Here's a great example:
 

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spunj

Administrator
Jan 24, 2019
157
1
18
I dodged a bullet by staying away from $FB. Look at this gap up! Bull trap? Bear opportunity? Seems a little lofty/frothy to me. Watching from the sidelines:
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spunj

Administrator
Jan 24, 2019
157
1
18
Let's back out and look at the support line dating all the way back to 2013. Notice the new resistance?

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spunj

Administrator
Jan 24, 2019
157
1
18
Having faith in the trendline shown above, I shorted FB yesterday morning. It didn't move much but the trade was a winner and I sold my put to close near the end of the day.

Today felt like a rinse and repeat day. I purchased more puts this morning thinking that the euphoria from earnings would begin to fade. Doing well so far. Take a look see:

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That longer term trendline is still acting as a repulsive force.
 

spunj

Administrator
Jan 24, 2019
157
1
18
FB continued on its march southward on Friday. Still holding puts at a profit. Will watch this early Monday in pre-hours.

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spunj

Administrator
Jan 24, 2019
157
1
18
Facebook's beautiful shooting stars ending the week of 2/1/2019. Not just one...but two!

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spunj

Administrator
Jan 24, 2019
157
1
18
Successfully closed puts on FB at opening this morning when price dropped to sub $164 for a few minutes. The stock is trying to exhibit strength but as of yet, can't quite keep the $170 tagged. Watching this one now.

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