Weibo Wobbles…But Will It Fall Down?

Prosper Trading Academy CEO and Senior Options Volatility Instructor, Scott Bauer, is live in the signal room today to discuss Weibo, Inc (ticker: WB). Weibo (WB) is a Chinese social media platform and has risen from $50 a year ago to a recent high of $142. The stock has pulled back to its 50 DMA and technically this is a fantastic entry point. The idea is to get a long delta position without buying inflated volatility (which was up almost 13% today). The April 140/145/146 broken wing call butterfly accomplishes both of these requirements and offers a fantastic Reward/Risk ratio.