NEW BULLISH Plays
Facebook, Inc. - FB - close: 45.04 change: +1.44
Stop Loss: 42.45
Current Gain/Loss: unopened
Entry on September -- at $--.--
Listed on September 11, 2013
Time Frame: 4 to 6 weeks
Average Daily Volume = 61 million
New Positions: Yes, see below
Why We Like It:
FB is the biggest social networking website on the planet with over 1.0 billion monthly active users. The stock has gone from dog to darling following a big upside surprise with its latest earnings report back in July. Shares have turned into a momentum play and FB has powered through multiple layers of resistance.
Today FB displayed relative strength (+3.3%) and closed right on major resistance near its IPO-session high of $45.00. If this rally continues FB could scream higher as any remaining shorts give up and try to cover.
I do consider this an aggressive, higher-risk trade because FB can be somewhat volatile and is already overbought. If you trade this stock I am suggesting investors keep their position size small to limit their risk.
We're suggesting a trigger to launch bullish positions at $45.25. If triggered our target is $49.50.
Trigger @ 45.25 *small positions*
Suggested Position: buy FB stock @ (trigger)
- (or for more adventurous traders, try this option) -
buy the Oct $48 call (FB1319j48) current ask $1.23