The Algorithm which gave us combined 5% return in 8 weeks on Facebook stock just generated a short signal, and the proprietary indicator is showing that there could be a healthy correction ahead. We never like going short as this is the most inefficient path to profitability, however in sideways market conditions we take what the market offers.
This has been added to the high risk/reward portfolio, and the fill price will be Monday’s opening price (regular trading hours).
Rather than shorting the stock outright we prefer to sell June 13 62 calls currently trading around $1.20. The trade is a winner if Facebook fails to close above $63.20 by end of day Friday.
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