# <center>Follow the best traders to success.</center>

When true investment guru's speak (those who run successful hedge funds) you should pay attention. These firms are required to file forms (called "13Fs") with the U.S. Securities and Exchange Commission ("SEC") every three months. The 13F lists what the firms bought or sold during the last quarter. 

The latest round of 13Fs shows several of the world's best investors (Julian Robertson, Chase Coleman, David Tepper, Joel Greenblatt, Steven Cohen, Stanley Druckenmiller, and Paul Tudor Jones) added to Facebook (FB) one of the world's dominating businesses.  So many elite investors own Facebook because the company is extraordinarily successful and growing rapidly.  About 2.7 billion people use at least one of Facebook's platforms every month. 

The companies success translates into $59 billion in annual sales which grew 32% last year.  The company earns an outstanding 38% profit margin and has $38 billion more cash than debt which can be used to reward shareholders or acquire complementary businesses.

FB chart shows the stock rising along the 50 day moving average (DMA). 

![image.png](https://ipfs.busy.org/ipfs/QmYuH6ujrhyvYJ6FeeoS1Sj9q1FrNxaBnNmgW8PMiDSg8B)

## Trade details:
This is a great time to use an insured income strategy. 

Sell to open, the June 21, $180 puts for $4.45 and buy to open, the June 21, $170 puts for $1.65 for a net credit of $2.80.  Use a good till cancel limit order and earn 23.7% annualized.

### Three possible outcomes with this trade.

At expiration shares trade below $170:  Both puts will be exercised. Your broker will simultaneously buy Facebook for you at $180 a share and sell it for you at $170.  This $10 loss per share is partially offset by the $2.80 credit you received upfront for a maximum loss of $7.2 or 4%.

At expiration shares trade between $180 and $170: In this case, you will be assigned shares at $180 and your $170 put will expire worthless. You will own shares at a cost basis of $177.20 or about 2% below Friday's trading price.  Once assigned you will own a great business and can turn around and collect more income by selling call options.

At expiration shares trade above $180: Both option expire worthless and you keep all the cash for a 23.7% annualized return.

The benefit of this strategy is your stop loss is built into the trade until shares are assigned. 

Follow these gurus' leads by positioning yourself to profit in Facebook today.

https://steemitimages.com/DQmNuF3L71zzxAyJB7Lk37yBqjBRo2uafTAudFDLzsoRV5L/Upvote%20Gif.gif

Disclosure: I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. The information provided should NOT be considered advice. The topics discussed are risky and have the potential to lose a substantial amount. I am not an investment professional and therefore do not offer individual financial advice. Please do your own research before investing.