For a hedged play on Facebook (FB) MarketIntelligenceCenter.com’s patented trade-picking algorithms selected a Feb 15, 2019 $140 covered call for a net debit in the $134.39 area. That is also the break-even stock price for the covered call. This trade will return 4.16%, or 43.45% annualized (for comparison purposes only), in 35 days. This covered call also provides 6.79% downside protection.
A lower-cost play on Facebook would use a longer term call option in place of the long position in the stock. Look at the Jan 17, 2020 $40 call and the same sold call for a net debit of $96.10.This trade only has 5.61% downside protection, but the assigned return rate rises to 4.05% or an annualized rate of 42.32% (for comparison purposes only).
The current 52-week low is $123.02 and the 52-week high is $218.62. Facebook stock has been showing support around $139.48 and resistance in the $146.92 range. The stock closed Jan 10, 2019's trading session at $144.19.