FB ER 4/27 EOD

Measured move coming IMO. Massive tank possible.

Open position, been DCA these 29 Apr puts:

175 #8
170 #6
165 #4

Amazing tankoff today... not holding QQQ overnight it could certainly enjoy a brief bounce to start the session, but;
FB meltdown will tank the techs.

Comment:

Tanks AH in sympathy w/Goog

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Gapping down 7 bucks premarket. 175 strikes itm

Trade active:

closed the overnite positions at open they went itm, getting a bounce look to fade it later eod

Comment:

Picking up a few 165p 170p on this lift, in 3 atm

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Added 2 now in 5p

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Adjusted position rolling down and taking profit now in 4 162.5p

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Rolled into 165p

Trade active:

Added 5 now in 10p; made a bear flag in day

Comment:

Holding ten puts. Moves closer. Could hedge with a few calls, or just eat it if ER surprises to upside. Doubtful it gonna be green after Goog IMO. Social media fades.

Trade active:

Rolled 5 165p down to 157.5 for a nice credit, take some risk off. If it tanks they all win.

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Rolled the rest took 2k risk off

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These contracts are stupid expensive FYI if you wonder why i do this paid $7-10 for the near strikes, rolling into further strikes for 5-6 bucks limits loss, keeps the leverage open. IF it tanks these will explode, if it surprise bulls they will go in half but I keep most of the nice gains from early trade. Upside probably not more than ten bucks, downside could be forty or more.

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Calls are priced about same as puts, very spendy; and there is no sooner strike to write a spread; could open a vertical but that defeats the play IMO.

Trade active:

Opened 2 more 157.5p and took a lotto on three 150p, $4 for these $24 OTM fgs

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Rolled 5 of the 157.5 into 2 150p holding 12 for a 2k credit, risk offed

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Equity options do not trade after 4pm so these freeze and if not enough cash to exercise them you are stuck all nite!

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Rolled 5 more 157.5p into 155p now in ten, another credit. It moves in anticipation...

Trade active:

Closed the 157.5 nice credit rolled all into 155p. Moving!

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FB has been steadily creeping lower while the rest of market rises. Somebody knows something... HOlding this pos to EOD, might add going to last quarter hour

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Holding ten 155p. Could be $140 or it could be $190 Thursday.
This is big gamble, don't bet what you can't afford.

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Ahh well it went the other way! LOL, sigh... I hedged with QQQ calls so a silver lining anyway.

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AH bought 10 QQQ 318c will defray losses on FB in AM. OFC you can't trade equity options AH, just a few exceptions..

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Another clever trick to turn bad position good (or add to losses!): convert the long puts into a short leg of a vertical spread, selling short a higher strike on same day of expiration for a credit. Premiums on these puts remain high so shorting an OTM put against the open contracts.

Trade closed manually:

Closed for 0.03c. Warned readers this could be a total loss! Thanks and kudos to those kind comments and helpful suggestions, a strangle or straddle position had been more expensive but actually profitable.

Live and learn! THe EOD QQQ calls cut my loss in half, came ahead on the trade overall so can't complain!