Buy Alert: May 8, 2015

Marcus Haber | May 8, 2015

Buy Alert: May 8, 2015

Trade Details

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

Why?

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.