And Alice's Restaurant :)) I think I have heard it too many times and I don't know what it has to do with Thanksgiving. Anyway, you have a Happy Thanksgiving as well.
You don't value a stock by its pps. It will join high flyers like GOOG at 100 and change and at several hundred dollars FB will be two to three times GOOG and AAPL.
I am just saying this because stock price and company value are two different things.
If you want to short Linkedin, I would check the fundamentals and chart of LNKD which has been doing well lately.
At work is a collaboration platform and Linkedin is a recruiting platform. The immediate affect will most likely be small.
If you feel that you can hold a short for years and wait and see if the stock drops then go ahead. If you want to short based on FB news, I would say that could be a recipe for disaster. Do your DD and look at LNKD and decide if you will short based on LNKD instead of what FB is doing. I have no position in LNKD but I do trade based on the company that I hold positions not based on what another company does (The other company may have an affect but that has to be taken together with the fundamentals of the company you are trading)
If you believe FB will do well because of At Work, then invest in FB.
jjj, do you have any idea how options are valued? This is an honest question and I am not trying to be sarcastic.
Just because the stock goes up does not mean the option contract goes up.
For the contract:
Delta is .0382 (this is the instantaneous value change of the contract for every dollar change in the stock), This will go higher as the stock goes higher but with a very low gamma you can assume this wont change unless the stock goes up substantially.
Theta is -.0027 This contract loses a 1/3 of a cent for every day that goes by. This is nearly linear based on the price of the stock divided by the number of trading days until expiration. Theta will increase as the contract increases therefore the decay of this option will decay faster as there is more value in the option. Lets make it easier....
Try an equation
divide it by 13 months which equal $5.86 multiply by 3 =$17.60
So for this contract to have any value the stock has to gain $17.60 every quarter.
If you want the true value of a far otm option, it will be what people will pay for the contract. If FB is $100 by July, this contract will be zero. The reason why is that it will need to increase its value by $50 in 6. Short time big move=big gamble.
If you believe that the stock will be $130 in July (which is extremely unlikely), then you could buy a $120 strike option for $1.20 instead of $.36. At this stock price this option would be worth around $20 and the 150 call would be worth about $2.00. It may be 3.5 times as expensive to initiate but in this scenario of $130 the 120 strike would be worth 10 times more valuable than the 150 strike.
Far otm option plays are nothing but big gambles. In reality as I showed you, your money is even better leveraged at lower strikes. I am not saying FB wont move upward but I am saying that buying a 150 strike call is not smart and has a high likelihood of being a losing play even if the stock moves in favorable direction.
If I wanted to lean to gamble I probably would not go to the guy playing the nickle slots.
The far OTM nickle options wilth the spread and commish will double your cost basis. These options have a delta of 0 for all practical purposes. If FB ends 2016 at $140, your bet is worth zero, zilch, nada.
Ill bet none of your publications say $150. Take a look at the current beta (or the incredible beta a of year ago) and neither gets you anywhere near $150.00.
By the way a little math 85% to 100% upside does not get you to $150. Also these firms are collectively saying less than $90 and a few are at or around $100. Neither one of those aforementioned are $150 or 85% upside or 100% upside.
I think you meant to say..........Watch and learn from my mistakes. Gamble alone bud!
PE is not a good indicator for growth stocks.
However in calculation, the PE is trailing 1 year and uses GAAP numbers. 1.70 and 2.00 are non-GAAP and have nothing to do with the calculation of PE.
Non-GAAP is used to calculate earnings which don't include one time events, stock and option awards, and certain other events. The numbers you see for year end and forward estimates are non-GAAP estimates therefore they have nothing to do with the calculation of PE.
FB will not be in China anytime soon. It is a long term project. China's government does not allow free flow of information. That is why they ban FB in China and it is not a matter of negotiation. It is a matter of China changing its ideology.
Mad Dog 2020. :( yuck. and filet min Oscar Meyer.
Doesn't get much better than that.
But here a toast to better days and better trades.
I believe that a lot of the people who have stock due to the Whatsapp aquisition have registered stock plans. I don't think anyone sold too much so its likely it will just be like normal stock sales. People are registering to sell and some plans may go out many years which is normal for people with restricted stock and options.
Its not going to happen because Cheryl is not leaving but non-competes often do not hold up in California and people go where ever they want.
There is just an article that states that Cheryl Sandberg would be a good CEO for Twitter. This in no way is rumor nor is it anything that is grounded. It is just a Forbes article based on the opinion of the author. The point of the article is that the current CEO is bad and that someone like Cheryl might be a good candidate.
Its not a rumor as it only states opinion and does not state that Cheryl would or will go to Twitter.
The same thing happened with GOOG in 2008. A lot of people came out to push the stock.
It is growing into its cap as we can see by the lower PE. People have to look out further than the next few months if they are holding for the long term and there is nothing wrong with the current plan. It is just hard to watch in quarterly increments. Hope you have been doing well!
Yeah, they are killing both the puts and calls. It is very hard for anybody to make money through earnings with options.
Wait until a couple a days into next week which will be a much better point to initiate new positions/trades. Options Friday might actually pull the stock up a bit but the shares being unlocked may create a drag on the stock. I think pps will hold within a buck or two of the $75 line. It all depends on how cash hungry Koum is.
Not getting into the fray but Q2 2014 reported revenue was $2.81 billion not $1.8 billion. That is probably revenue from Q2 2013.
$6.00 is a big move in my book. The puts could make some money but a $6.00 drop may not hold. Stay tuned tomorrow and for those who make money my hats off to them.