What's the Bearish Trade for Facebook?

Your next video will start in

Recommended Videos

  • Info

  • Comments


Sept. 13 (Bloomberg) -- Average Joe Options Founder Todd Horwitz discusses his options play for Facebook with Scarlet Fu on Bloomberg Television's "Market Makers." (Source: Bloomberg)

Of today's options update.

But horovitz has -- todd horwit z has a bearish trade on the social number.

Does it come in light of the news on twitter?

You know, actually, it comes in light of the way the chart has moved.

Facebook has moved back up to its original ipo price of $45. to me that is a little bit of a bearish sign.

Gone up about 80% in the past four or five weeks.

The risk reward is very high probability trade.

What i want to do is i want to go into next week and i want to sell the 44 dollars $.50 call and by the 4550 call for a net credit of $.40. i want to do that four times, which would bring me a net credit of $1.60, and i want to take that and i want to go to october and by the october 44 ports for $1.95, where ever it is heading right now.

I have a chance to have unlimited reward and limited risk.

My maximum risk on this trait is $200, my maximum reward is physically unlimited.

If i can guess through -- if i can do for the next seven trading days, october puts for free.

How much more costly have those options cost you now?

I have adjusted to the price of where we are trading right now, so we should be able to sell the call spread and able to buy the puts for about $1.90.

This text has been automatically generated. It may not be 100% accurate.


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change