On Friday’s CNBC’s Options Action, the crew analyzed the performance of Facebook stock. Facebook (FB) has been one of the hottest stocks in 2017, part of the FANG group but has started to underperform it’s peers over the past few months. Compared to Tech, Consumer Discretionary and even the S&P 500, FB has severely underperformed all, which is a bearish sign. Coupled with a break below a bullish channel, points to possible weakness going forward. Expecting FB to have topped, Michael Khouw suggests selling an April 185/196 Call Vertical for a $3.80 Credit.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: FB Options Action
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