Today we are going to look at a ratio spread with puts on FB.

In this episode:

• A review of last week's skip-strike butterfly in AMZN.
• What was the strategy? Expectation?
• Where is AMZN now?
• What about GOOGL?
• How do you want the market to move when you have a butterfly position?
• FB earnings are coming up. Let's look at a ratio spread.
• What is the outlook?
• Setting up the trade.
• Selecting strikes.
• What is the cost?
• What do we want to happen?
• What is the cost?
• Remember volatility.