Dan Nathan's Facebook Options Trade

Dan Nathan spoke on CNBC's "Options Action" about Facebook, Inc. FB. He expects the stock to move lower in the next couple of months and he suggested an options strategy to make money on the move.

Nathan added that implied volatility in the name is very low so he wants to be long options. To make a bearish trade, Nathan wants to buy the August 185/160 put spread for $6.50. The trade breaks even at $178.50 or 4.54 percent lower. If the stock drops to $160 or lower at the August expiration, the trade is going to reach its maximal profit of $18.50. Nathan added that the expiration covers the next earnings report.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: OptionsMarketsMediaCNBCDan NathanOptions Action
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!