Earnings Beat – FB Trade Update #1

Market Context
Good day Insiders,

Facebook came out with earnings last night and the stock is mimicking the energizer bunny. It keeps going and going and going. Now? These outcomes are fantastic! We had positioned our trade to yield a profit in either direction of the stock. Facebook went to the upside and so now we are going to lock in our profits. Recall that the long call spread is where our profit sits, so let’s not leave things to the unknown as anything can happen tomorrow.

The Trade
We are going to sell the 165-170 call spread against the one we bought yesterday 6 times. This will lock in a profit regardless of where FB decides to go from here.

Risk & Reward
Notice how our risk is NIL, and regardless of where FB moves for today and tomorrow, the worst thing that can happen is that we make $1,000 profit. If we land between 169-160, its a great payday!