Facebook Crash
- Thread starter pod11432
- Start date
Media is trying to save FB and discourage the retail investors from selling so that the big guys can get out with being hurt less.
This was in the first page of CNN
http://money.cnn.com/2012/07/26/technology/facebook-earnings/index.htm?hpt=hp_t1
This was in the first page of CNN
http://money.cnn.com/2012/07/26/technology/facebook-earnings/index.htm?hpt=hp_t1
yeah well facilitating serendipity helps.. i'm with you..a good risk to reward ratio and some intuition.. if you could be right alot of the time.. and were smart about the options trades you made.. and on top of that weren't scared to buy deep otm options on the occasion.. It just doesn't make intuitve sense for people to take more losses then wins to make super big wins.. they would rather pick up nickels in front of a steam roller..
Quote from cactiman:
[B, with no chart history to guide me,
http://www.cnbc.com//id/48340647 [/B][/
Why would break your above rule even if gambling?
Anyhow, I wouldn't sweat 20-30 through Aug.
Quote from LEAPup:
[/
Why would break your above rule even if gambling?
Anyhow, I wouldn't sweat 20-30 through Aug. [/B]
It was the power of the "fun being part of the hype and IPO, etc." that pushed me over the edge.
Human weakness strikes again.
Of course charts are human emotions on display, are they not?
In my defense, at least I waited for FB to fall a bit and didn't jump in on the first day. Those were the real suckers.
If the Iron Condors work, I'll take the money and run of course; figuring I was due for some good luck at long last.
But I will NEVER trade an IPO ever again.
My whole approach depends on seeing longer term Support and Resistance levels, and they just aren't there with a newly released stock.
FB was definitely "the exception that proves the rule"!
(I hope...)
A lot of risk for $25 less commissions? You could tune in next week and watch FB short squeeze back up to 27!
FB seems to want to be above $23 so far, after all the bad news is already out.
So an alternative trade might be to Sell an August 23/22 Bull Put Spread for a $35 credit, with a Max Loss of $65.
If FB closes at 23 or above on August 17th you'd make +53.85%.
But I'm not doing either trade.
Will just continue praying for my Iron Condors...
Quote from atticus:
I'll bet you $1,000 that we touch $26, using delta*2 as the touch probability as the odds you lay. Deal?
Let's bet with no money. I will call you a legend if FB closes above 26 on August option expiry date. I sold lots of 27 and 28 calls expiring today. I sold them at 1.5 and 2.2 just a few days ago. I have also sold 26 Call August for 3.2 and then it went to 3.8 but I kept my cool and did not tap out. I am selling more and more of FB naked call 26 today. FB tends to gravitate towards 24 or 23 today. So far 24 looks higher possibility. Just because of option.