FB – Facebook (Last:23.98)

I’m tracking 24 Mar 30 calls acquired for an average 0.375.  Continue to offer 24 March 33 calls short against them for 0.50.  If successful, we’ll have legged into a vertical bull spread that cannot lose. The best we could do would be to make $7500 on the position if Facebook is trading $33 or higher come March expiration. And the worst? That would be with the stock below $30, which would still produce a trading gain of $300.  The stock, meanwhile, looks bound for the 25.36 target of the pattern shown, having blown through its ‘p’ midpoint sibling at 22.12 on Friday. _______ UPDATE (11:15 a.m. EST):  There are 7 billion people on the planet, but when Facebook gapped higher on this morning’s opening, evidently not a one of them was bidding for March 33 calls.  The options just sat there as a result, and so we’ll continue to offer them short, hoping for a modicum of interest if the stock continues higher as I expect. _______ UPDATE (November 23, 1::04 p.m. EST):  We caught a gust of wind on the opening — a head-fake that allowed us to short the calls for 0.50 before they topped at 0.55 and the stock receded into negative territory.  As noted above, this spread can’t lose. The absolute worst we can do is come away with a $300 profit if the stock collapses. However, we stand to make as much as $2400 a point, up to $7500, if the stock is above $30 come March.  Incidentally, the calls themselves had a pattern that projected a top of at least short-term importance at 0.58.