I Just Did A Spit Take

Hi Shoppers,

 

Everyone and their mother is moving to Florida, it seems.

 

(Heck, even Option Pit Head Income Trader Bill Griffo decamped for Tampa last year — and he is looking VERY relaxed on Zoom calls these days.)

 

My husband, Scott, and I have been eyeing Florida real estate for a few years now, dreaming of retiring in the sunshine with a pool and maybe a boat.

 

We considered a not-too-long-ago visit to Sarasota, Siesta Key, Naples and Marco Island an “investigation” of where we could see ourselves living in the future.

 

Northwest Florida, or the Redneck Riviera as they call it, is fabulous for families, too.

 

Our friends bought a lot on Keewaydin Island. They are trying to convince us and other friends to join them — but Scott likes running water and electricity.

 

What is going on in the real estate market down there has got to be criminal. I know the Florida market has a reputation for major hills and valleys … but this is crazy!

 

Check out the price history of these three properties, most notably the dates and price swings:

 

 

 

What is happening here? I realize people buy and flip properties — but $750,000 to a million dollars more in a month or less!?

 

How can these realtors be doing their due diligence? 

 

This has the makings of a John Grisham novel!

 

If anyone has any insight into this, I would love to hear it.

 

Anyway, there’s a reason I’m talking about real estate that goes beyond absolutely wild price swings in the Sunshine State …

 

I am seeing a very interesting candlestick in Zillow (Ticker: Z) — and it has given me not one but TWO trade ideas!

 

Zillow Prices

 

I spotted a really pretty hammer in Z. Then I see they had earnings last night and the stock traded up over $6 already to $127.74. That’s up 5%.

 

But the stock traded as high as $142.80 as recently as April 24.

 

 

Since the stock has already moved so much, I do not have an option recommendation …

 

But I DO recommend jumping onto the long side of Z today with this higher opening.

 

I think it can trade back up to $146.

 

I am seeing another hammer candlestick in Teladoc (Ticker: TDOC) after a long downtrend that started on Feb. 16. The stock has come down from $308 to closing yesterday at $158.37.

 

If TDOC opens higher this morning, I would like to buy a call spread in the May21 cycle.

 

 

I like buying 162.50 calls with an implied volatility of 45.25 and selling the 182.50 with an implied volatility of 49.98.

 

These markets are wide and there isn’t a ton of volume, but I would try and buy the May21 162.50/182.50 call spread and pay up to $3.80.

 

 

I would take my loss on this spread if it trades down to $2.60. I would begin to take profits in the $6 area.

 

Trade Reviews

 

      • On Saturday, May 1, I recommended a put spread in SPY if it opened lower on Monday. Unfortunately, SPY did not open lower — but, damn, it traded way lower on Tuesday taking that spread up 90%. Oh well. There will always be other trading opportunities. Nice to be right in the long run.
      • On Monday, May 3, I recommended a put spread in Philip Morris (Ticker: PM) if the stock opened lower that morning. It opened higher, so no trade.


Circling Back

 

One more note on the real estate craziness I talked about up top — we will not be retiring anytime soon with those insane prices!

 

But if you have any insight into the craziness of the Florida real estate market — or questions about options trading! — email me at email me licia@optionpit.com

 

Thanks for Reading … See You Next Tuesday!

 

Licia Leslie

The Nanny State Strikes Again

Hi Shoppers,

 

I find it amazing that there are so many things for me to complain about these days …

 

More and more often I find myself at odds with what’s going on in the world. It’s probably just the hard-won wisdom I’ve accrued through the years really paying off.

 

Anyway, my latest complaint is with the U.S. Food and Drug Administration’s recent announcement that it plans to ban menthol cigarettes and mass produced flavored cigars.

 

Now, you’re not going to find me in a Newport ad or anything …

 

 

But the government always seems to think it can take care of us and make better decisions for us than we can for ourselves.

 

This, folks, is called the Nanny State.

 

Under the previous administration, the U.S. was set up to move away from this model.

 

Now? Well, those trillions of dollars in spending everyone is buzzing about will come with strings attached.

 

Historically, we Americans have all been about “live and let live” and loving our personal freedoms. (There’s a Country song in there somewhere).

 

In my opinion, as long as we know the dangers, we should be able to make our own choices on the VAST majority of issues.

 

Two things came to mind when I first heard the menthol news:

 

      • How about the youths — and JUUL targeting them with flavored vaping products?
      • Don’t cities hand out syringes for drug addicts to safely continue to inject?

 

How do these things reconcile?


I’m not going to get into the syringe/addiction/homelessness issue that has exploded in recent years. It’s just too much.


But I do have firsthand experience with menthol cigarettes and teenage vaping.


As a teenager, most of my peers smoked cigarettes. The girls’ favorite was Virginia Slim Menthol Lights — because we were cool.


My high school of 4,000 had smoking areas — for students!!


I was never brave enough to do that, though. My girlfriends and I were more closet smokers.


Of course we knew it was bad. But we loved it.


I was always getting grounded when my parents could smell the cigarettes on my breath — even past the huge wad of gum I was trying to mask the scent with.


Despite getting grounded countless times, I would still go out and smoke with my friends.


As for teenage vaping, nowadays they have a ton of options with all the flavors JUUL aims directly at the young crowd. In fact, I wouldn’t be surprised to see a JUUL truck roll into the neighborhood one day blaring “The Entertainer” and dispersing fruity treats to a mob of clamoring kids.


E-cigarettes’ initial claim was to help people quit smoking. Now they’ve become a gateway to the real thing.


The good news is it looks like the numbers are going down (on their own!):

 

 

The other good news is that parents now have much more sophisticated ways of catching our kids vaping. We have all kinds of tests available to purchase online to check our kids urine for nicotine and some drugs.


My folks would have loved that!!


WARNING: END OF RANT


OK, you didn’t come here for an angry mom blog, and much like that first puff of a Virginia Slim, I’m here to deliver the goods


After all my gear grinding, check out my trade idea in Philip Morris (Ticker: PM)


Smoke Signals

 

Check out the PM daily stock chart for the past three months:

 

I believe Friday’s candlestick could be a hanging man. I will wait for the confirmation this morning looking for an opening price lower than $95.


If PM opens lower and trades lower, I would like to buy the May21 95 puts and pay less than $1.60.

 

 

There aren’t any juicy puts to sell against these — the 90 puts are only $.35 — so I will buy them outright.


If these puts trade down to a dollar, I will take my loss.


I would like to take profits $2.50 and higher.


No Smoking OR Vaping Please … but I wouldn’t mind this trade lighting up.


Thanks for Reading … See You Next Tuesday!



Licia Leslie

Trading Lessons Learned — Again

Hi Shoppers,


Wow, what a week for my trading


And not in a good way!


Peloton (Ticker: PTON) took a dive on Thursday — and I fell into an all-too-common trap for traders:


I kept looking for reasons and making excuses to stay in my position.


For instance, I thought to myself …



 “The stock will trade to the recent lows and bounce from there.”


That low was $99.12 … and PTON proceeded to trade down to $96.54 on Thursday.


When it didn’t bounce, my spread (being so short-dated and expiring Friday) traded down to $.45.


Then I thought, “Well, at this point, I might as well take my chances for only $.45.”


Might I suggest getting this tattooed on your forearm …


STICK TO YOUR TRADING PLAN. SELL AT YOUR STOP PRICES. DO NOT HOPE, WISH OR PRAY FOR A POSITION — IT MAKES FOR A HELLISH DAY. JUST GET OUT!


On Thursday night, a little voice in the back of my head kept saying, “I still have tomorrow, it traded over $104 yesterday.”


Don’t fall for it!


While dealing with PTON all day Thursday, I did sell my losing XPeng (Ticker: XPEV) near my stop of $1.25-$1.20. (I sold at $1.10.) It closed with a $1.35 bid, but that’s OK. I’m out and can always re-enter.


My Oracle (Ticker: ORCL) position gave me a hard time on Thursday, too. At one point, these puts were up 40% — but I wanted more. The chart didn’t look as bearish on Friday, so I closed them at $1.01 for a 15% loss.


Last but not least, there was my SPDR S&P 500 ETF Trust (Ticker: SPY) put spread. SPY gapped up over $3 Thursday morning, so my spread, expiring Friday, was in the dirt. SPY traded lower on the day — lower than the previous low — and I could have gotten out for 25% profit. I didn’t. 


I thought I saw a hanging man candlestick in SPY, so I kept my spread until 3:30 on Friday — when I sold it at $.50 for a 58% loss.


Not a great week, but it could have been worse …


And of all the lessons I was reminded of in recent days, the old trading adage of “Live to fight another day,” was among the clearest.


So, all is not lost … and now we can look ahead to get back on the gain train we’ve been riding for most of 2021.



Moving On!


No matter how long you’ve been trading, you will still make mistakes. 


Even professionals sometimes allow human emotion to enter into our trading equation when it should always be strictly about the numbers and the plan.


So, after a tough losing week the best thing to do is get back on your trading horse and ride on.


Here is my next trade idea.


I think the SPY will keep moving lower due to that beautiful hanging man formed on Thursday with a confirmation of a lower day on Friday:



For this spread I am going to give myself a little more room by going out to the May14 expiration cycle which is two weeks away.


I think SPY will be moving lower, but it could move around in between.


I like buying the May14 417.50 puts with an implied volatility of 11.97 and selling the 407.50 puts with an implied vol of 16.07.


I would pay $2.25-$2.30 this ten point spread.



I will take my loss if the spread trades down to $1.50.


I will begin to take profits at $3.50 and higher.


The best thing about trading is every day is a new day. Enjoy your weekend!


Thanks for Reading … See You Next Tuesday!


Licia Leslie

Living to 120

Hi Shoppers,

 

Guilty as charged ..


Yes, I am one of those people.


Guilty of having a Peloton bike and not using it as much as I should.


At least I’m not guilty of having clothes piled on it.!


(However, I do have a trade idea on it that I’ll get to in a moment …)


I consider myself a workout person.


I used to be more of a runner. I actually did the Soldier Field ten-mile race where runners in end up in Soldier Field, where the Chicago Bears play. Very cool! Scott and Grant were in the stands.


Now I am about a three-miler.


I do go to a weight lifting class three mornings a week.


It’s a pretty tough class of about ten of us, men and women. We have push up day, which we all dread, during which we do 20 sets of 20 pushups. 


I never would have thought I could do that, but I can. Well … the last few sets, I have to admit, I am on my knees. 


I am doing this because I am kind of freaking out by how old I am.


We need to stay strong as we age and weight lifting is important for our bones, especially us women.  


They say a good test of your fitness is how difficult it is to stand up from a sitting position on the floor. Try it.


So I do try to squeeze in some yoga, too.


The woman below (not me!!) is 98 years old! I want to be able to do that!

 



According to Dave Asprey in his book Super Human, we can all live to be 120 years old.


That’s the goal. A healthy 120. That way I will be able to know my grandkids.

 

Let’s Trade!


All this exercise talk is due to what I am seeing in the Peloton interactive Inc (Ticker: PTON) stock chart.


It had some bad news about a month ago with blaring headlines that their treadmill kills kids and pets.


Well, just like most news headlines, that was blown way out of proportion.


I think PTON could be forming a base here and trade higher. It is sitting right on a support line of $99-$100.



If you look more closely, the Thursday, April 22, candlestick could be a doji.


If the stock opens higher today, I would like to buy a call vertical spread expiring Apr30.


I am choosing  this cycle because I think it will happen fast and the May07 options are 20 volatility points higher due to the May 5 earnings dates.

 

 

If PTON opens above $101 this morning, I will buy the 102 calls and sell the 108 calls. Now I know you are going to say — the 108 have a lower implied volatility. Yes they do, but this spread is expiring Friday and I would like to pay the least amount possible.


I would pay $1.90-$1.95 for this six point spread. Since it is expiring so soon, I will keep a close eye on the decay and take my loss if the spread trades down to $1.40.


I would like to begin taking profits in the $3.25 area.


Trade Review


        • My Oracle Corp (Ticker:  ORCL) May21 75 puts are up 37%, I am hanging onto them.

        • In Xpeng Inc Adr (Ticker:  XPEV), my May21 32.5/40 call spread is up 8%; I still think the stock is going higher.

Now get your ass off the couch!


Thanks for Reading … See You Next Tuesday!

 

Licia Leslie

No Coke, Pepsi!

Hi Shoppers,


“No Coke, Pepsi!”


Remember that?


If you’re older, you probably do.


It’s a classic from Saturday Night Live, when it was really funny. (And it’s relevant to my trade idea, but more on that in a minute.)


“Cheeseburger, cheeseburger!” John Belushi would bellow.


Every member of that original cast was a phenomenal comic on their own …


Legends.


SNL was the highlight of the weekend when we were kids. Along with Happy Days on Tuesdays and The Waltons on Thursdays.


Based on the Billy Goat Tavern restaurant here in Chicago, we all knew the “Cheeseburger Cheeseburger” sketch and loved it!


The Billy Goat actually had a location right down the street from the Chicago Board Options Exchange in the South Loop when I traded there.


Sadly, almost every restaurant around the exchanges is now closed.


There aren’t any people anymore.


Even before Covid, the South was struggling as the trading pits emptied at the Chicago Board of Trade, Cboe and the Mercantile Exchange.


Makes me want to cry. It was so vibrant with huge walking around.


Here is a picture of LaSalle St on July 20, 2020, at 8 a.m.



Woof.


By contrast, check out the real estate in markets in any Florida town or Austin, Texas, or Charleston, South Carolina.


It is insane!


The good news is traffic is picking up here, restaurants are opening back up and people are out again.


We are actually going out to listen to live music on Saturday night!


Anyhoo, let’s bring this back in, but be sure to check out the Jane Curtain and Dan Akroyd skit “Point/Counterpoint.” It’s hilarious!


Now …



Let’s Trade!


Ready for some refreshment with a great trade idea in Pepsico (Ticker:  PEP)?


Looking at the stock chart I see a doji at the top of the last rally from $128.32 to a high on the doji of $147.80 on Wednesday.



I think PEP will trade down near $140. I like buying the May21 145 puts with an implied volatility of 13.71 and selling the 140 puts with an implied vol of 15.76.


I would pay $1.30 for this five point put spread with 28 days until expiration.



I will take my loss on this spread if it trades down to $.90. I will begin to take profits at the $2.30 and above level.


From comedy, to Covid, to cities it’s crazy how much things have changed.


Thanks for Reading … See You Next Tuesday!


Licia Leslie

XPEV Trade Idea

Hi Shoppers,

 

While browsing the stock charts, I found a very interesting trade idea in Chinese electric vehicle manufacturer XPeng (Ticker: XPEV) …

 

 

The stock has been trading down since April 1 — from $39.24 to a low on Monday of $29.77.

 

Quite a move … down 24% in twelve trading days.

 

I think the hammer and the doji of Monday and Tuesday could be signaling the end of this downtrend.

 

I will wait for the confirmation this morning of an opening price above $31.30 and I will buy the May21 31/37 call spread paying $1.80-$1.85.

 

 

I like buying the 31 calls with an implied volatility of 82.12 and selling the 37 calls with an implied volatility of 88.29.

 

This offers me a fairly inexpensive entry price for this spread with the long option being right at the money and gives me 32 days until it expires.

 

I will hold this spread on the downside to $1.20-$1.25 and take my losses.

 

On the upside, I will begin profit taking at higher levels due to the time frame I have at $3 and higher.

 

Previous Trade Ideas

 

        • My SPY put purchase worked out well. I bought the Apr21 415 puts Monday morning for $1.08 and sold them at the $2.20 level, $2.55 level and then down at the $1.75 level for a 95% gain.

 

Due to the quick profits and the expiration date of Wednesday, I sold all of them.

 

Had I hung on to a few of these puts, I would have a much larger gain; they traded a high of $4.60 on Tuesday! Can’t complain, though.

        • I also recommended buying the Apr23 36 either calls or puts in Vaneck Vectors Gold (Ticker: GDX) depending on where the stock opened on Monday morning.

The stock opened lower so I paid $.55 for the Apr23 36 puts. They looked good through the end of Monday but come Tuesday the stock was not cooperating; it was trading higher. I took my $.20 loss on these which was 36%.

 

Remember the name of the game is to stick to your trading plan.

 

Looking forward to seeing everyone at our Mentorship Day on Thursday!

 

Thanks for Reading … See You Next Tuesday!

Licia Leslie

A Quick Cheap Shot

Hi Shoppers,


Take a look at what I am seeing in the Vaneck Vectors Gold (Ticker: GDX) daily chart:



I know you see it also. It is a hanging man candlestick formed on Friday.


This candlestick is formed at the top of an uptrend and could be alerting us that the uptrend may be ending.


A hanging man candle looks like a man’s (or woman’s!) legs dangling. It shows us that the stock traded lower on the interval, creating the longer lower shadow, but the buyers came back and pushed it to close near the high of the day, which you can see by the small real body.


The long lower shadow shows there is some weakness in the buying.


If I get a confirmation today of an opening price below $36, I will be looking to buy puts in the Apr23 expiration cycle.


I am choosing this expiration because I expect the down move to happen in the next few days and I do not want to pay the extra premium for the longer time frame.


Looking at the Apr23 puts there is some value to be had:



If I get the lower opening confirmation, I will buy the Apr23 36 puts for $.50-$.55, a nice, inexpensive option.


Check this out, since the stock had a breakout to the upside on Thursday, it could easily open higher. 


If that is the case, I would look to buy the Apr23 36 calls for the same price range, another inexpensive choice.


There you go! Two great ideas! Let’s see where this baby opens this morning!


Thanks for Reading … See You Next Tuesday!

Licia Leslie

Has the World Gone Mad?

Hi Shoppers,


Sorry not sorry — I am ranting again!


I just feel like there isn’t any REAL information out there.


“They” want us all to get the Covid vaccine but …  uh oh …  six people out of 6.8 million have gotten blood clots.


Wait. What? That is .00000088 percent of the total number of people vaccinated.


Do ANY of our medications or vaccinations have a better record than that???


What is going on here? I simply do not understand it.


“They” are making it sound like we can never go back to normal.


When one Congressman asks Dr Fauci about all of this, the hearing chairperson told her colleague to shut his mouth!


Really??


By the way, why are Michigan’s Covid cases going up while cases in Florida and Texas  remain stable?


Just asking for … me!


What the hell is going on?


OK, I’m done. 


Let’s Trade!


Do you realize the market has gone up 15 of the last 16 trading days?


Yep, the SPDR S&P 500 ETF (Ticker: SPY) has only one red candlestick since March 25.



And guess what Friday’s candlestick was … a doji.


A doji at the top of the uptrend could signal a change in the trend.


It has a very small or nonexistent body and upper and lower shadows.


This candle is formed when the buyers and sellers are represented equally in the market. 


Neither the bulls or the bears won the interval.


If SPY opens lower than $417.25 on Monday morning, this will be the confirmation of the doji.


I would like to purchase puts, with a shorter term expiration date, just out of the money.


So, I am looking at the Apr21 415 puts:



Since these puts are trading $1.18, I will not be selling another put against it.


I like the idea of this low-dollar entry level with unlimited profit potential.


My limit is the time frame of only a week and decay working against me.


I believe SPY will move low enough to make at least a dollar on these.


I will take my loss if these puts trade down to $.80


Trade Updates


On April 7, I wrote about an eBay (Ticker: EBAY) put spread … but hit my loss target price and took down a 26% loss.


But that’s OK because …


On April 10, I wrote about a put spread in Facebook (Ticker: FB) … The stock opened lower so I had to wait until Tuesday to pay $2.10 for Apr16 310/300 spread. 


FB traded down over $6 the following day and I was able to sell the spread at $4.20, $5.00 and $6.00 for a nice total gain of 130% — in one day!


Thanks, Mark Zuckerberg! Ha!


My Lockheed Martin spread idea on April 12 never took off because I did not get the confirmation I was looking for. The stock opened higher … so no trade and no loss.


I promise to try and control my ranting and raving … but someone has to say something!!


Have a wonderful weekend!


Thanks for Reading … See You Next Tuesday!


Licia Leslie

Cool Planes, Cool Plan

You don’t need to be a pilot or an airplane buff to get goosebumps when the Blue Angels fly over.


They are truly amazing!


And the sound … just … goes right through you. 


I can’t imagine what it would be like in the cockpit.


My husband, Scott, is a private pilot. He flies a Cessna 182, a small, single-engine four-seater.


It isn’t anything fancy, but it does get us to my parents’ home in Arkansas in under three hours … as opposed to a nine-hour drive. I will take it!


We have flown to many air shows over the years, namely the famous EAA AirVenture Oshkosh

in Wisconsin.


AirVenture is such a big event that you can’t find a place to stay … so we pitched a tent under the wing!


We were never huge campers or anything, so when Scott’s hand was scratching the nylon tent I thought there was a mouse inside.


Scared the hell out of me in the middle of the night.


It can actually be dangerous flying into an event like that just because there are so many planes in the air. Amatuer pilots, as you might imagine, can be dangerous.


It is fun, though. I sure hope Mayor Lori Lightfoot doesn’t plan on canceling our Air and Water Show here in Chicago in August. Sadly it was canceled last summer due to Covid, and the talk is there’s no money in the budget for it in 2021.


Blue Angels flying over Lake Michigan in Chicago.


Every year we could see the U.S. Navy Blue Angels or the U.S. Air Force Thunderbirds, they alternate years, practicing from our rooftop deck.


It was phenomenal.


We could also catch them out of our office building windows on LaSalle and Adams. I just love that sound!


Not sure why exactly, but our favorites were the Blue Angels.


Once, many years ago, after catching the air show in Kankakee, Ill, we were flying away and heard the Blue Angels talking on the radio. 


Scott said, “Hey! Nice show, Blue Angels!”


“There’s someone on this channel,” a voice said in reply. “We need to switch.”


Speaking of switching …


Keep reading for my trade idea in aerospace giant Lockheed Martin. 


Hit the Jets


How cool is this?



It’s a Lockheed Martin F-22 Raptor. Cool name, too.


All this airplane talk is due to the Lockheed Martin (Ticker: LMT) stock chart.


LMT is up 15% ($52) since March 12 when it traded $338. Friday the high was over $390.


I am seeing a doji candlestick formation on Friday which could be signaling an end to this straight uptrend.



A doji candle is formed at the end of a trend where the candle has a very small or nonexistent body and longer upper and lower shadows. 


This is formed when the buyers and sellers are being represented equally in the market. No one side has won out.


I will wait for a confirmation by an opening on today lower than $386.23.


I am looking for a quick move lower, so if LMT opens lower on Monday I will buy puts with an Apr16 expiration.



I would like to buy the Apr16 385 puts with an implied volatility of 14.83 and sell the 375 puts with an implied vol of 17.45.


I would pay up to $2.00 for this spread. With this spread expiring on Friday it will begin to decay very quickly, so I will need a move below $385 on Monday or Tuesday.


If this spread trades below $1.50 I will take my loss.


I will begin profit taking when the spread trades above $3.


Time to fly!


Thanks for Reading … See You Next Tuesday!


Licia Leslie

Bill Gates Wants to Do What!?

Hey Shoppers,


Have you heard about this?


Bill Gates would like to “cool the earth” … so he has a plan to *checks notes* block or dim the sun.


Honestly, who do these people think they are? (And let’s not even talk about Bill Gates and “cool.”)


Yeah, he wants to create that nuclear winter they were afraid of in the 1980s.


Or simulate the way volcanic ash blocks the sun which, by the way, prohibits crops from growing.


This is accomplished by spraying particles in the upper atmosphere to reflect sunlight in the hope of bringing down temperatures.


But Bill knows what’s best for the entire planet!


He’s like a real-life Clippy from old-school Microsoft Office — energetic and trying to be helpful, but it’s just not working out.


Gates is funding a research group at Harvard University that is exploring the concept, known as “solar engineering.”


The effort’s not-evil-sounding-at-all name: Stratospheric Controlled Perturbation Experiment, or SCoPEx. 


Scary stuff, I think.


My favorite argument against all this climate crisis fear-mongering is the fact that humans’ representation on the earth’s timeline is the size of a pinhead … and the length of time we’ve been actually recording any data is even smaller.


Do we need to take care of our planet and keep it clean? Absolutely!


But blocking the sun … our source of life, no way!!


A town in Sweden that had agreed to host a test balloon launch related to solar engineering recently pulled out.


Good for them!


Find somewhere else to spend your money, Bill Gates.


I am pretty sure you’re not surprised by my climate crisis opinion.


And, yes, I am lumping Gates in with the rest of Big Tech — too much power.


Blocking the sun literally sounds like a plan hatched by Superman nemesis Lex Luthor.


Yikes.

Let’s Trade!


I am going after Facebook  (Ticker: FB) again.


I was hugely wrong at $300, thinking FB was ready for a pull back. 


FB has since traded over $315. Take a look at the stock chart:



Thursday’s candlestick has formed a hanging man and Friday’s candlestick could be the confirmation by opening lower.


The hanging man is found at the top of an uptrend and could signal the end of that trend. It has a small body and a longer lower shadow which means the bulls are tiring.


I think FB could trade back down to $300-$305.


Looking at the options, I like the Apr16 expiration, which is Friday, so if I do not get the move I am looking for, I need to get out quickly.



I like buying the Apr16 310 puts with an implied volatility of 25.58 and selling the 300 puts with an implied vol of 27.64.


I would pay up to $2.40 for the $10 spread.


Like I said, if FB does not move my way — down — I will get out pretty quickly. If the spread trades down to $1.80, I will take my losses.


I would take my profits at the $3.50 level and higher.


My ebay (Ticker: EBAY) Apr16 62 puts are down a tad, but I am hanging onto them.


Have a great weekend and LET THE SUN SHINE IN!


Thanks for Reading … See You Next Tuesday!

Licia Leslie