Sold in the money calls yesterday against my 6k shares. I sold the 25.50 for next week expiration. A cool $10,200 made. I hope FB drops below 25.50 next week. I'll hold my shares long. The summer will show increase usage of mobile for FB and Instagram will start to show profit and Zuck can begin selling shares at the end of the 3 rd Q. Zuck and friends will run the stock up prior to their ability to sell and before the next quarter. My only concern is how low we go after 2Q earnings.......I'm thinking we stay above 20-22 range until 3Q earnings. The fed won't slow QE because unemployment will remain low into the 3rd Q. Soooo, we'll see. If it closes above 25.50 next week, I still make about 3k. Win win.
I have 6000 shares at 26.769 = 160,618.21
I sold 60 25.50 July 26th ITM calls for 1.70 each. Pocketed $10,200 as of now.
If FB closes above 25.50 on July 26th, I will make $10,200-loss of -$7,618.21 = $2,581.79
If FB closes below 25.50 on July 26th, I will take the $10,200 and wait until the 3rd quarter to sell above 27. I think the 3rd quarter results will be strong.