Collapse Alert: Facebook Inc Earnings Will Likely Miss, I Just Bought Puts

Facebook Inc (NASDAQ:FB) will likely see as much as a $20 drop in its stock price based on both technical and fundamental factors. With earnings a month away, the stock is forming an extremely bearish flag pattern on the chart. The downside should begin playing out within days. The catalyst for major downside though, will occur when Facebook Inc reports earnings. Multiple companies have stated they are no longer seeing a profitable return on Facebook ad spend. With major companies pulling back their spending from Facebook, revenue and profits will decline. With the stock priced to perfection, Facebook Inc will see huge downside to $108, maybe lower $100. I bought November puts today.

By Pro-Trader
Annabelle Trader