Dan Nathan spoke on CNBC's "Options Action" about Facebook, Inc. (NASDAQ: FB). He expects the stock to move lower in the next couple of months and he suggested an options strategy to make money on the move.
Nathan added that implied volatility in the name is very low so he wants to be long options.
To make a bearish trade, Nathan wants to buy the August 185/160 put spread for $6.50.
The trade breaks even at $178.50 or 4.54 percent lower. If the stock drops to $160 or lower at the August expiration, the trade is going to reach its maximal profit of $18.50.
💰 $14,000 PROFIT Day Trading Stock Options (Netflix & Facebook)
Nathan added that the expiration covers the next earnings report.
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