The Facebook Stock Trade

The FB Stock Trade

Equity lovers can buy the breakout over $121.08 with a tight stop below Tuesday’s low ($118.50). The risk per share is minimal and you’ll be able to exit swiftly should the setup fail. Option enthusiasts might consider buying the Aug $120/$125 bull call spread for around $2.40.
If earnings can drive Facebook shares above $125, the call vertical spread holds the potential to double your money. The risk is limited to the initial $2.40 while the reward is capped at $2.60.
Shares of Facebook Inc (NASDAQ:FB) are on a tear of late. Growing demand for FB stock helped boost the social media king to a new all-time closing high on Tuesday at $120.61.
Savvy sleuths will note FB has yet to score a new all-time intraday high, however. That peak stands a mere pebble toss away at $121.08. It’s a record that will be surpassed in short order. Perhaps today. And not that Facebook needs it, but I suspect the flight to unseen heights will receive a power boost once it clears the old summit. Spectators just love piling into winners once all prior ceilings have been surpassed.
Like moths to a flame, baby.
The post-Brexit world has been good for FB stock. Though to be fair, darn near every stock has been enjoying the melt-up. Facebook’s technicals have returned to the bull camp with vigor. All major moving averages are pointing higher and a breakout is looming over the aforementioned peak at $121.08. Further aiding the bulls here is the fact that Facebook shares are virtually unchanged since its last earnings announcement. The past three months of churn have established quite the respectable base to launch from for its next ascent.'
Bear in mind that Facebook steps up to the earnings plate in the not-too-distant future (July 27). That leaves six trading sessions for tactical traders to play the breakout before the Binary Monster swoops in to decide their fate with the flip of a coin.

Source: Investorplace