Dan Deming's Facebook Trade

Dan Deming of KKM Financial spoke on Bloomberg Markets about an options strategy in Facebook Inc FB ahead of earnings on November 2.

He wants to buy the November 134 call, sell the November 137 call and sell the November 140 call for a total credit of $0.10. The trade is going to be profitable if Facebook trades between $134 and $140.10 on November expiration. It achieves its maximal profit between $137 and $140 and above $140 the profit starts to decrease. It starts to lose money above $143 or 9.12 percent higher from the current stock price.