Carter Worth And Mike Khouw's Facebook Trade

Carter Worth spoke on CNBC's Options Action about Facebook Inc (NASDAQ: FB) and shared his technical analysis for the stock. He presented a chart of the stock and showed that the price tracked a trend line. It has recently broken above a flat top and returned back to it. Worth thinks that this is a good sign and he explained that in the situation like this one stocks more often than not revisit their highs.

Mike Khouw doesn't think that the stock is cheap, but he agrees that there could be some upside in Facebook. He wants to buy the May 82.5 call option for $2.85. The break-even for the trade is $85.35 or approximately 6 percent higher from the current price.