Facebook (FB) crushed earnings estimates and is up big after hours. Here’s how I’m trading it. (April 25, 2018)
FB
Let’s look at Facebook ( NASDAQ: FB ). The company reports earnings; they beat earnings and revenues. They are also buying back 9 billion dollars worth of stock; that’s their plan. That really juices the stock. It is kind of like the company is vouching for itself when they are putting their money back to work. They think the stock is cheap.
So what are we going to do with this stock? This is my setup: I am looking at the stock, I actually took a position on some options, an iron condor, a little bit of a twist to that but that is not the subject of this video, but I think I will do okay tomorrow. I was really looking to see a big move like this one way or another, right? And so I waited until the company reported earnings; saw the stock kind of gyrate around a little bit.
CNBC, I don’t know what they were doing, maybe they were selling My Pillows or doing something else. I just wanted to see what happened. I didn’t care what CNBC says, I really don’t, but I wanted to see what the stock was doing when CNBC started talking about it. So I waited, they start talking about it, the first thing, oh they beat, blah, blah, blah; I don’t even remember after that. But I saw the stock start to tick up so I bought some. Then I bought some a little bit further up and now I have a small position that I will hold overnight and into tomorrow. I will probably just hang onto it the way the stock is trading. I want to get an alert when the stock hits the 50-day moving average, it probably will tomorrow at the open.
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