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In another Rip Van Winkle scenario, FB has been trading in a range. Despite all the political drama and a couple doses of earnings excitement, FB is at the same price it was four months ago. OK, that’s not quite as long as old Rip’s twenty years, but it’s long enough to make FB one of the more boring FAANG stocks. Never say never, but at this rate, FB will never make it into the Trillion Dollar Club (a $354 print would get it there, but there’s only a 17% prob it will touch that price in the next four months). With earnings out of the way, FB might not have a reason to make a big move in either direction for a while. FB’s 20% IV rank is relatively low, but its 38% IV is high enough to make short premium strategies interesting. If you think that FB will continue to trade in a range for the next few weeks, the short iron condor that’s long the 240 put, short the 245 put, short the 290 call and long the 295 call in the March expiration with 43 DTE is a neutral strategy that collects a credit 1/3 the width of its strikes, has a 67% prob of making 50% of its max potential profit before expiry, and that generates $2.23 of positive daily theta.
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