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Carter Worth And Mike Khouw's Facebook Inc Trade

Carter Worth And Mike Khouw's Facebook Inc Trade

On CNBC's Options Action, Carter Worth shared with the audience his technical analysis of Facebook Inc (NASDAQ: FB). 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: CNBC Mike Khouw Options ActionOptions Markets Media


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