• Chart of the Day: Facebook, Inc. (FB)

    by  • March 1, 2013 1:41 pm • Quick Hits, Tony Venosa's Chart of the Day • 0 Comments

    Today’s chart is of Facebook, Inc. (FB) which operates as a social networking company worldwide. The company builds tools that enable users to connect, share, discover, and communicate with each other; enables developers to build social applications on Facebook or to integrate their Websites with Facebook; and offers products that enable advertisers and marketers to engage with its users.

    Ticker:  Facebook, Inc. (FB)

    What I Am Looking At:

    • FB announces today it will host an event on March 7th at 1:00 pm to showcase an update
    • Year-to-date performance from social media stocks as measured by the etf, SOCL have outperformed up nearly 8 percent
    • FB still substantially below IPO price
    • Shares have pulled back to the 0 percent year-to-date level and the bullish gap area from January 2nd was just filled
    • Volume By Price indicator showing possible support in the $26-$28 area
    • Shares are currently breaking out from a tightening Bollinger band situation as seen in chart above, expecting a volatility expansion
    • Enormous bought-to-open put open interest resides at the 27-strike price for the March series and the March 1st weekly series, an unwinding of these bearish bets could create a tailwind  for shares
    • Round number $30 level may act as a magnet for price
    • One concern, analyst community favors FB, as 19 out of 27 rate the shares a “buy” or better
    • Another concern is the short interest has moved to its lowest level

    Strategy:  Long with a stop just under 0 percent year-to-date level, targeting January high

     

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    About

    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.

    http://www.schaeffersresearch.com/

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