Looking at a FB Ratio Put Spread into earnings.

Download Options Playbook Radio 182: FB Ratio Put Spread

Today we are going to look at a ratio spread with puts on FB.

In this episode:

  • A review of last week’s skip-strike butterfly in AMZN
  • What was the strategy? Expectation?
  • Where is AMZN now?
  • What about GOOGL?
  • How do you want the market to move wihen you have a butterfly position
  • FB earnings are coming up. Let’s look at a ratio spread
  • What is the outlook?
  • Setting up the trade
  • Selecting strikes
  • What is the cost?
  • What do we want to happen?
  • What is the cost?
  • Remember volatility