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December 31, 2013  Tue 9:24 AM CT

FB: SEE CHART GET CHAIN FIND STRATEGIES
Facebook has come off its highs in recent days, but one large trader apparently believes that further losses will be limited.

optionMONSTER systems detected the sale of 5,000 April 50 puts for $3.16. This is clearly a new position, as open interest in the strike was just 255 before the trade appeared.

The put seller is looking for FB to hold above $50 through expiration in mid-April, at which time the $3.16 would be kept as profit. The trader takes on the risk of having to buy shares if they are below that level. (See our Education section)

FB is up 0.9 percent to $54.19 this morning. The social-networking stock was at a high of $58.58 last week and were last below $50 on Dec. 11. 
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Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

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