opened up a bearish directional butterfly on FB yesterday.
bought the 24-25-26 July Call Butterfly for $0.30 debit. Max gain about 280% at expiration.
Exit strategy is 50% gain, 50% loss.
Directional butterflies are a very forgiving strategy.
Only a small amount of capital in the position. $300 debit (ie max loss)
Here is my PnL curve from yesterday...
Here is another good article from Tycoon Reports discussing option plays on FB...
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