FB structured products available today

[m22au]

If and when FB has a big pop on the open (let's say, to $50 or more), I'd like to short it. But I assume that there won't be any shares to short until some time next week.

I see that there are quite a few FB structured products available for trading, mainly issued by UK and other European institutions.

Most of these look like relatively complex options (eg. with knock-outs), compared to the easier to understand vanilla options that I am more familiar with (ie. calls and puts).

Are you planning to trade any of these FB structured products, and if so, which ones do you plan to trade?

 

[newwurldmn]

Quote from m22au:

If and when FB has a big pop on the open (let's say, to $50 or more), I'd like to short it. But I assume that there won't be any shares to short until some time next week.

I see that there are quite a few FB structured products available for trading, mainly issued by UK and other European institutions.

Most of these look like relatively complex options (eg. with knock-outs), compared to the easier to understand vanilla options that I am more familiar with (ie. calls and puts).

Are you planning to trade any of these FB structured products, and if so, which ones do you plan to trade?

How can banks quote these without any real hedging options. They must be priced at stupid levels.

 

[m22au]

Quote from newwurldmn:

How can banks quote these without any real hedging options. They must be priced at stupid levels.

agree, but obviously once FB begins trading, they'll be able to hedge, and so hopefully the spreads on the products will tighten.

 

[newwurldmn]

Quote from m22au:

agree, but obviously once FB begins trading, they'll be able to hedge, and so hopefully the spreads on the products will tighten.

Well, they may not be able to short (if necessary) and they will have no basis to determine what the realized vol should be. So my guess is that they are buying vol at like 16 or something stupid.

 

[Rodney King]

To have a meaningful discussion, OP (assuming he's for real) needs to offer examples of instruments he's considering, with the indicative pricing he's seeing.

 

[m22au]

Quote from Rodney King:

To have a meaningful discussion, OP (assuming he's for real) needs to offer examples of instruments he's considering, with the indicative pricing he's seeing.

OK, I'll give in to my curiosity.

Why do you have doubts that I'm not "for real" ?

 

[Rodney King]

Quote from m22au:

Why do you have doubts that I'm not "for real" ?

Because you haven't offered examples of instruments you're considering, with the indicative pricing you're seeing. What part of that is unclear?

 

[m22au]

Quote from Rodney King:

Because you haven't offered examples of instruments you're considering, with the indicative pricing you're seeing. What part of that is unclear?

The part that is unclear, is that your argument does not explain your
"not for real" premise.

 

[newwurldmn]

Quote from m22au:

The part that is unclear, is that your argument does not explain your
"not for real" premise.

Do you have a term sheet for any of these notes? I'd be curious to see one.

 

[m22au]

Quote from newwurldmn:

Do you have a term sheet for any of these notes? I'd be curious to see one.

Don't have a term sheet, there are a wide range of products available, and I only discovered them this morning.

Issuers include CBK ING BNP RBS UBS amongst others.