Watching Three Earnings Reports

Facebook (FB) is the second-largest company reporting today, but it will be No. 1 on the media's list. The chart here has coiled up nicely, although I feel that options pricing lines up well with the chart targets. I am looking for $29.50 on the upside and $25 on the downside, which is a $2.00 to $2.50 range. Options are currently anticipating a move around $2.30, so a straddle is not in play for me here. I do believe there is a lot of air below $25 or over $29.50, but there is a lot of risk if using the weekly options. 

I have set up three trades, but they will work with each other. First, I went long the June $27put/$28 call strangle for around $2.75. Then I added the May 10 $28 call/$27 put strangle and short 2x May 3 $30 call/$25 put for around $1.05. The total cost of the trade here is $3.80. Lastly, I want to add some calendar spreads, long the May 17 $30 call/$25 put while shorting the May 3 expiration of the same strike for about $0.36. Overall, the trade is just looking for a move which stays between $24 and $31 here, with Facebook ideally moving toward the $30 or $25 level....272 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.