Facebook Earnings Tonight After the Close – FB

Tonight Facebook reports earnings, where will the stock head afterwards?  The option market is pricing in an over $4 move, will we get get that?  Facebook $74 or $66?  Or will the stock make an even bigger move?

This time last year Facebook was busy moving off sub $20 levels.  Now sub $70 levels... what levels will it be working off this time next year?  $110 levels?

The $74 calls that expire this week are $.89 the $66 puts are $.80.  The call to put volume is over 3 to 2.

What do I think?  I think $FB breaks out to fresh all time highs after the bell today after it reports earnings and closes the week over the $75 level.

I will be a buyer of $74 calls at some point today for that move.  The risk to that trade would be if $FB moves only 1-2% higher or trades flat or lower.  I have to not only be right about the reaction to $FB earnings, but also to the size of the reaction.

Could we get a similar reaction to earnings like this time last year (shaded circle in the chart below)?  Anything is possible.


Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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