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Dan Deming's Facebook Trade

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Dan Deming of KKM Financial spoke on Bloomberg Markets about an options strategy in Facebook Inc (NASDAQ: FB) ahead of earnings on November 2.

He wants to buy the November 134 call, sell the November 137 call and sell the November 140 call for a total credit of $0.10. The trade is going to be profitable if Facebook trades between $134 and $140.10 on November expiration. It achieves its maximal profit between $137 and $140 and above $140 the profit starts to decrease. It starts to lose money above $143 or 9.12 percent higher from the current stock price.

 

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Posted-In: Bloomberg Markets Dan Deming KKM FinancialOptions Markets Media