Carter Worth And Mike Khouw's Facebook Inc Trade

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On CNBC's Options Action
, Carter Worth shared with the audience his technical analysis of
Facebook IncFB
. He thinks a 1.63 percent decline on Friday did not break the uptrend and he wants to take a long position in the stock. Worth explained that Facebook made a pullback toward a support on Friday, and he added that the stock should continue to move higher.

Mike Khouw suggested an options strategy to make a bullish trade. He wants to buy the December 135/145 call spread for $2.30 and sell the December 115 put for $2.30.

The options structure allows him to profit if Facebook Inc moves 5.5 percent higher, above $135. If the stock jumps to $145, Khouw is going to make a maximal profit of $10, and if the stock drops more than 10 percent, he is going to start to lose money.

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Posted In: CNBCOptionsMarketsMediaMike KhouwOptions Action
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