Facebook reported earnings after Wednesday’s close… And absolutely murdered all expectations!
The company beat earnings per share by about 40% and revenue expectations by $2.5 billion for the quarter.
Facebook Inc. (Nasdaq: FB) revenue was through the roof during the pandemic — growing 94% year over year to $26.2 billion — a monster earnings result every way you look at it.
The news caused the stock to pop over 8% premarket.
That’s a pretty amazing overnight gain for a stock. But with just a little more work, traders could have turned that 8% pop into a 400% windfall — overnight.
I know because that’s exactly what I did while limiting my downside risk at the same time.
So what did I do? How did I only risk $50 to make $250 in a few hours?
Let me show you…
Earlier this week, I showed how traders can limit their risk through “unknown” events like earnings season with options spreads.
And that’s exactly what I did with a Facebook earnings spread.
There were some massive options buying that caught the attention of my scanner in the Weekly Blitz Alerts Daily Market Color three times this week leading up to the earnings event.
So I scanned through and targeted the Facebook weekly April 30 options in a bull call spread.
This is a limited risk, limited reward strategy and an alternative to just buying calls.
You might look at that and ask why I wouldn’t want to buy calls outright. Well, the answer is pretty simple…
Check out my short video and let’s talk about Facebook earnings and call spreads to give you great upside with limited downside risk. This of course works for any stock and not just Facebook.
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And if you want to know which stocks traders are tearing up the tape to buy, my system over at Weekly Blitz Alerts is always running, scanning through billions of transactions across 16 different exchanges looking for the next “Shadow Blitz.” Head on over and find out who is hitting my screens today.
P.S. What do an 83% stock price dip, dividend cuts and swimming in debt all have in common?
They were all the news about Apache Corp. in April 2020.
But with those headlines, how did I know to buy in at that time…
And walk away with a 157% return just over a month later?
I just waited for this.