CNBC’s Options Action Trade for July 24th, 2017 – Facebook (FB)

On Friday’s CNBC’s Options Action, the crew analyzed the performance of the FANG stocks. Facebook has recently printed some very large, very bullish option trades this past week. We saw large Sept 175/200 and 180/200 Call spreads traded, suggesting a very bullish outlook on Facebook going into earnings. Additionally, these far out of the money call spreads, provide a cheap strategy for a large move higher with good risk/reward and limited risk. Expecting a break higher on earnings, Michael Khouw suggested buying an Sept 170/180 Call Spread for a $2.50 Debit.

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: CNBC Options Action

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