Mike Khouw Manages His Open Facebook Trade

On CNBC's "Options Action", Mike Khouw explained to the viewers how to manage a Facebook, Inc. FB trade he suggested on July 19.

He recommended that traders should sell the Aug. 205 call and buy the Jan. 205 call for a total cost of $9.70. He explained that the trade was up slightly, even though the stock was trading lower. When the August call expires, he is planning to sell another call and lower the cost and the breakeven of the trade.

Facebook's stock traded around $196.51 per share Monday morning.

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