The drop over the past couple of days in Facebook Stock (among other stocks) shows the value of closing trades early and locking your profits. However it also shows that sometimes closing early opens up fresh trades.
Back on Nov 27 new trades were entered in Facebook Stock as the Dec 8 trade was being closed. That trade closed on Nov 28. However thanks to the trade being closed, I was able to double-dip on the long puts to really boost the return in Facebook Stock trades.
This article updates the Dec 15 expiry trade and discusses how it will be managed in light of the decline in Facebook Stock. The article outlines the two double-dip trades and their handling should the stock decline continue.
There is also a conservative trade outlined for smaller portfolios or those who like the trade idea but would rather risk less capital. Even that trade can return better than 2% for a nice short expiry period.
It is days like today when volatility is higher and there is more uncertainty, that trades can really boost a portfolio. Today’s trades in Facebook Stock show just how much a difference volatility makes.
. This Facebook Stock Million Dollar Challenge trade alert and strategy outline is for FullyInformed Members.
Facebook Stock (FB) Million Dollar Challenge Year 1 Double-Dip Trade Alerts – Dec 1 2017
Members can sign in to the full members site here
Non-Members can join here, read members comments, view membership benefits
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. You trade at your own risk. The author assumes no liability for your investment decisions. Read the full disclaimer.
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