Our Hot Money monitor triggered a bullish alert in Facebook Inc. (FB).
Short term calls are active and the bullish order flow is betting shares rally higher in the next few sessions.
The Oct 8, 2021, $335 calls traded 34k contracts and buyers getting in around $2.40 per contract.
You can follow that same activity, but here's what I'm doing…
Sell-to-open the FB November 5, 2021, $325/$310 put spread
At last glance, this is trading at $4.50 per spread.
This trade will have a max loss of $1,053 and gain of $450, but has a higher probability of profiting.
The reason I'm doing this versus buying the calls is because implied volatility is elevated and would effect the calls even if shares rally.
I'm not looking to collect every penny on this position and will buy back the spread at $225.
Let’s manage our risk before entry and I’ll keep you updated every step of the way.