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Put Buyers Like $FB
Most our analysis in the Lighthouse Point Platinum Option Trading Service relies on momentum or change in momentum and a trigger. This trigger could be a moving average or a support/resistance area from historical price action. In Facebook($FB) we identified a recent support area where buyers stepped in to buy the stock. If this was […]
Most our analysis in the Lighthouse Point Platinum Option Trading Service relies on momentum or change in momentum and a trigger. This trigger could be a moving average or a support/resistance area from historical price action.
In Facebook($FB) we identified a recent support area where buyers stepped in to buy the stock. If this was broken then this could lead to additional selling pressure. On March 20th, Facebook was already through the 200 day simple moving average and sell pressure opened the stock just above this line. It proceeded trade up slightly then went to test this line intraday. The selling pressure pushed it through the support area giving a great trade signal.
Put option traders got a nice sell off all the way down to $161.95.
Peter S. was one of our subscribers who took advantage of this line and scored a nice 69% profit on his puts.
