It's hard to imagine that #Facebook dropped so much after earnings. The record drop in $$ value shocked most investors and what shocks me even more is the fact that it seems like it still hasn't been able to find its footing after going from $323 to $245 and hitting $207 today. It's crazy!
But as an option trader, I always look at ways to capitalise on this movement so let's take a quick look. I don't normally look at the fundamentals in great detail, but the P/E at 15 is an acceptable value.
I am also not a chartist but it certainly appears that there was supposed to be a support around $211...
Given the heavy sliding it's no surprise that the IV rank is over 65, which also makes the stock attractive for option sellers.
Would I trade it?
I would but I already have position in #FB and unfortunately so far it backfired.
The 180/240 strangle seems attractive given that the 1SD (standard deviation) is 188/228.