LONG $FB ~ FACEBOOK~ SETUP USING CALL-SPREAD ~ #OptionsTrading

Dec 18, 2019

METHOD: Long FACEBOOK {price at entry 198.39] via:

• +2 VERTICAL FB 100 (Weeklys) 27 DEC 19 195/202.5 CALL @3.75 ;
  
• Decay only threatening if losing the trade; 1:1 R:R.
  

STRATEGIES: Using day chart:

• The 20/50 Mean green cloud contracts, and we can look for a new expanding cloud to form for a long from the mean.
  
• The Fisher Transform bounce signal appearing near the mean.
  

TACTICS: The plan in terms of stock price:

• STOP is price < 196
  
• TGT1 202.34 to scale; TGT2 208 to exit
  
• Consider scaling as green cloud becomes large
  
• Consider exiting at 50% max profit
  
• We may let the Fisher Transform and 20/50 mean together take us out technically for whatever we get win or lose.
  

Will update in comments,
B3
d^.^b

Dec 18, 2019

Trade active

Filled, however, I had to readjust to price at entry 200:
+2 VERTICAL FB 100 (Weeklys) 27 DEC 19 195/202.5 CALL @4.80
TGT 208 to exit

Dec 30, 2019

Trade closed: target reached

Win! Target Exit 208 hit with limit order.