Yesterday near the close I joined Mark Bunting on The Close to discuss what was going on with $FB options, as well as a potential trade to consider if you are looking to pick up facebook shares sometime soon.
If you can't watch, here are my notes:
- the blood isn't unprecedented; take a look at action from $AMZN IPO back from 1997
- $28 was supposed to be the low end of the IPO pricing range before they started to get greedy
- making trades right now is difficult due to the low sample size, so it must be done more on sentiment and feel
- cash-secured puts are a good way for investors to get access to facebook at a lower price in exchange for a credit
- selling puts only makes sense if you're bearish on the volatility in the stock
I have no idea how to embed the clip, but to watch it simply follow this link.