We hold a bull spread that is guaranteed to make money — two dozen March 30-33 verticals legged on in November for a 12.5-cent credit. We stand to make as much as $7500 if Facebook is trading above $33 come March 15, but no loss is possible since we own the position for a net credit of $300.
FB has rallied sharply since we completed the spread, hitting a recovery high of $29.79 yesterday while the broad averages were falling. Although I doubt it can keep up the pace, yesterday’s thrust refreshed the bullish impulsiveness of the daily chart by exceeding July’s highs near 29.50. And while this is no guarantee that our spread position will achieve the maximum theoretical gain of $7500, it is sufficient for now to make us feel pretty good about it.