Facebook (NASDAQ:FB)

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.

The content contained in this blog represents the opinions of the authors who may or may not hold long or short positions in securities of various companies discussed in the blog based upon the authors' views. The commentary in this blog in no way constitutes a solicitation of business or investment advice. In fact, it should not be relied solely upon in making investment decisions, ever. It is intended for the entertainment of the reader, and the authors. In particular this blog is not directed for investment purposes at US Persons.
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