Facebook (FB) Facebook Earnings Breakout – July 22nd, 2019

On Friday’s Options Action, the crew analyzed the performance of Facebook stock. Despite trading near its all-time highs, FBWealth Strength IndexFB is Extremely Down and trending Down is trading near the low end of its valuation based on growth. Coupled with lowered earnings expectations, there is a potential for a beat on earnings. Expecting FBWealth Strength IndexFB is Extremely Down and trending Down to trade higher, Michael Khouw suggests buying an Aug/Jan 205 Call Calendar for $9.70 Debit. As of Friday’s close, these calls were trading at a $9.40 Debit.

We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: FBWealth Strength IndexFB is Extremely Down and trending Down Options Action Trade