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Magnet Trade in Facebook

There are two obvious levels of resistance in facebook right now: 60.50 and 63.


If the first level is broken, it's a high odds bet that the stock will trade up to 63 to see if there is true supply there. This is what I call a "magnet" trade.

There's only a few days left until earnings so that can obviously change things, but I am looking for a quick move over the next few days.

Update: The stock gapped up to 62.75, almost fulfilling our target at 63.


IWO Premium Members received a trade alert to pick up the Apr4 62 calls for 2.60, and they're now sitting at 3.80. As earnings are coming up, we are going to be very aggressive with taking profits.

by Steven Place

Steven Place is the founder and head trader at