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American Capital Agency Corp. Message Board

  • fit4life16 fit4life16 Oct 24, 2012 9:21 AM Flag

    OT: FB earings

    woooo! fb earnings beat and up 25% in pre-market. Short sqeeze could very well extend into market open. Anyhow, does this leave a great entry point now for those of us looking to go long the weeklies puts from this Friday to next Monday (234 million shares unlocked). Anyone else planning to go with this strategy?

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    • Alright, just bought the November 22 puts for 0.85. Pretty expensive premium, but not seeing much buying pressure, and expect this to dip below 20 again, especially after the November 14th one.

    • See what I'm talking about??? I had FB calls that expired, if I had bought the nov calls, I would be sitting on big profits.

      You guys are greatly understating the risk of expiration. I can be completely right on the trade, but if I'm wrong on the timing, I lose everything...

      • 3 Replies to olee2116
      • Why don't you look at trading spreads instead of straight up calls or puts. I know that the return may not look as good, but spreads will allow you sleep at night, and you can adjust them if things go haywire.

      • But Olee brother, what I don't get is why don't you do farther options? If you get short term options you should accept that you will lose. With let's say jan 14, it's like holding a stock while adding more each month if you made a mistake. I don't want to sound bad, but you are gambling and not investing in options. Good Luck brother, and buy FB puts

      • But the premium on fb calls (and puts) were very expensive as well. That is why I stayed out of earnngs. In retrospect, buyng the calls was a good play, but the ATM calls were at a price that your BE was a +7% gain. When the weeklies have premiums like this, I would just either just long or short the stock. The premium is still extremely high, but I expect the November puts to look much more attractive in the next few days.

19.95-0.02(-0.10%)Aug 24 4:00 PMEDT