This is as good as it gets when it comes to a high probability trade setup with low risk. FB is one of my "basket stocks" that I watch regularly for good option trades. Using the daily and 30min charts, there was strong reason to buy puts today.
This was a nice day trade if you use the 30m chart (with 5m) and take profits as price comes down from 334 to lower moving averages. Note that price came down to 50ma and bounced. So you set your exit to OCO - either at stop loss or at target price. RSI supported the bearish outlook because it dipped below 33.33 and as price bounced RSI stalled under 66.66. Usually 65 is a bear resistance unless there is a sharp rally or higher volatility.
On the daily chart, today's open provided a low-risk entry for swing puts. If you miss the setup near open, there is another entry as price bounces from the first drop. Yesterday RSI moved up to test 50 as price went up. So swing puts will give you time for this price to turn down below 330 again, and RSI should close be lower today or tomorrow.
This was a nice day trade if you use the 30m chart (with 5m) and take profits as price comes down from 334 to lower moving averages. Note that price came down to 50ma and bounced. So you set your exit to OCO - either at stop loss or at target price. RSI supported the bearish outlook because it dipped below 33.33 and as price bounced RSI stalled under 66.66. Usually 65 is a bear resistance unless there is a sharp rally or higher volatility.
On the daily chart, today's open provided a low-risk entry for swing puts. If you miss the setup near open, there is another entry as price bounces from the first drop. Yesterday RSI moved up to test 50 as price went up. So swing puts will give you time for this price to turn down below 330 again, and RSI should close be lower today or tomorrow.