FB - Short @ 141?

27 Mar 2017

There is evidence based on trendline analysis that the price may be reaching one or more resistances. However, the price remains above both the 20 and 50 moving averages (day). Another factor is earnings coming up which based on past history can often lead to sharp moves up or down; but more often up. Option activity is favoring the call-side with large amounts of open interest in OTM strikes for the expiration dates following earnings. I would not go long here but I also certainly would be hesitant to short as well. Selling double diagonal option spreads looks like a great way to profit from the uncertainty/volatility around the time of earnings.