Buy Alert: May 8, 2015

| May 8, 2015

Buy Alert:  May 8, 2015


Trade Details

Buy Facebook (FB) June 19th 80 Calls for $1.85 or better (lower)



Facebook has been in decline since the company posted earnings at the end of last month.  The company’s revenue grew 42% year over year, but missed expectations.  The biggest issue for FB has been the strong dollar – something it has absolutely no control over.  This social media giant has an absurd amount of unlocked potential.  I consider any setbacks, especially due to something temporary, are a buying opportunity.

We’re going to buy June calls.  They’re a little pricier than what I normally recommend, but in this case I believe it’s worth the risk.  Conservative investors can take profits at $82.50.  Aggressive investors can hold up to $85.  For risk control, conservative traders should exit at $75, while more aggressive traders can hold down to $72.


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Category: OTW Buy Alerts