This Trader Sees Shares Of Facebook Hitting $100

Justin Pulitzer was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick. Tune in to the daily broadcast live Monday-Friday at 8 a.m. ET here.

Justin Pulitzer is a professional swing trader that combines technical, fundamentals and macro news. While discussing Facebook In FB, Pulitzer suggested shares can trade as high as $100, but is unsure of the trajectory and timing. "I think a lot of these stocks like the Priceline Group Inc PCLN and the Facebooks and the ‘big high flyers' are burning off a lot of their excess moves that they had from the two thirds of 2013 and 2014 and have been consolidating," Pulitzer said. The trading pro continued and noted that shares of Facebook touched all time-highs of $86.07 only to reverse its course and trading at a channel low. Shares of Facebook were trading at $80.60 during the final trading hour on Tuesday where shares have stagnated since mid-May. Despite the "really choppy" pattern, Pulitzer has been selling short out of the money puts and using the proceeds as a long proxy. For investors that chose not to sell short options, he recommends call spreads, but not weekly calls given the time decay is "too quick." "What I would prefer to see people do in a stock that is range bound is maybe buy longer dated calls and sell shorter dated weekly calls against it," Pulitzer also suggested investors implement.