Two trading strategies for Facebook earnings $FB

  • Facebook, reporting on November 4, is one of the few companies with a growth story
  • A higher share price comes with a worse risk/reward ratio
  • Let’s look at how to possible trade options around Facebook’s earnings

Social media giant Facebook  (FB) is scheduled to report its latest quarterly results next week on Wednesday, November 4. The stock remains one of the few believable growth stories that the masses of investors are aware of and as such continues to trade this way as it gets chased higher.

I am a believer in the company and its growth prospects but don’t believe in chasing the stock higher at current levels for risk/reward gets worse with every uptick.
Luckily Facebook stock allows prudent traders and active investors several avenues of potentially profiting into and after its earnings report, which is where my current focus in the stock lies.
Read my full analysis HERE
Chart: There is a trade to be had in Facebook into or after earnings. Look at the historical drop off in implied volatility of options after earnings
FB implied vol

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