I actually hold the stock and bought at 580, but have sold July 31 Call options every 5 points the stock ha come down. I am nicely up because of the premiums I have collected. The lowest call options I have sold is 535. If this stock ends here, My cost basis would be around 405.
I am short from $567.50. I am not about to tutor you on how to do financial analysis, as I paid big money for my education, but you keep adding to your long position and trusting all is well.
The recent qtr showed a stunning jump in sales, that confounded even the folks who follow Amazon.
Yet, the economies in China, Europe and South America are slowing.
So how was IT done ?
If you never studied financial accounting it is over your head.
Sentiment: Strong Sell
Sure it does, meanwhile keep losing coin on your shorts. Flatlined?... how does that makes sense given their revenue growth is offsetting the mix to more 3rd party.
FACT: the CALL purchasers in AMZN, Dow, and Nasdaq favoirtes are ALWAYS the smart PRO money, the PUT purchasers continue to be amateur ignorant SUCKERS who have NO concept of how SUPER BULL market equities trade!!!!
I think Friday's close will be between $525 and $530 so you should be able to recover part of your cost by selling puts at the $522.50 level to make a spread that will expire worthless.
If FB is not able to keep the general bubble stock short squeeze alive tomorrow, which currently appears to be the case, then we're looking at weeks of selling pressure and profit taking in AMZN, NFLX and FB among others. Too much money wants to cash out compared to new money wanting to get in at these prices. No squeeze = drift down.
If you want to buy monthly puts, I recommended PNRA (Panera Bread). I notice there are significant less people going to this restaurant while the stock just made 52 week high. If there is a general stock market crash in summer, this stock will lose at least 30% of the current value. You can buy September or October OTM puts. Just relax and not working hard every day watching stocks move. Basically the food there has lost novelty because there are tough competition from all new restaurants.
They missed this quarter but blamed on chicken shortage. (CMG blamed on pig shortage just a few days ago. So that excuse has been used. Wall Street think traders are all idiots.) That the stock hit 52 week high today is a joke.
Either is not a good bet. I doubt FB would move significant to either side for option buyers to make money, at least in the next couple of days.
I bought myself some time (by not buying Weeklys), but I have to be prepared to lose on this bet.
I just think FB should be 1/4 of AMZN (in market capitalization) at most.