FB isn't being courted to join the DOW. The article you read was just comparing market caps.
FB wont be in the DOW anytime soon. GOOG is not there and is not currently being courted. FB will not join until it has a PE much lower and has been a stable stock for a decade.
There is no rumor and FB is not anywhere near joining the DOW. Understand how the indices work. Once again, the article you read just compared market caps and was just indicating that FB has a high market cap in comparison to DOW components.
His only strategy is to buy extremely far otm options. You can look and if your gamble is good you make money. If not you lose everything.
You can do that with any options for instance if you bought $10K worth of $.10 options and the the option goes $10, you are a millionaire. If it doesn't you lose everything. That would be a weekly option and I think you have better odds in Vegas but if you can afford to lose money follow his advise.
I think you are a wee bit off according to Forbes Bill Gates is worth 79.9 billion. It would need to be around $190 billion provided he doesn't sell shares or convert options where he will have to pay income taxes.
There are probably another 1000+ plus companies out there like that but none of them have anything to do with FB.
Google ipod at $85.00. It was never at $50.00.
Google does not drive Facebook......Facebook does. They are doing well right now and it looks like they will continue but their growth has nothing to do with Google.
Did you know that Facebook has been established since 2004? That is the year GOOG went public.
Facebook was a very mature company by the time it went public. In fact it was so mature that it came out at almost a $100 billion market cap.
The metric you are pointing has no basis in comparison to GOOG. Neither does $1,200.
FB is going to do as well as it does. It doesn't matter what other companies do. If FB can produce a revenue of something like $400 billion to $675 billion, then it will be a $500 to $800 stock.
I think that is a ways off. Don't you?
Marisa, Marisa, Marisa...........Wasn't she supposed to bring a little of the Google magic with her? I guess she was just pulling our Yang.:/
Look at the volume and OI of weeklies around 75 strikes. They have been wrapping a lot of positions today.
It will be interesting to see if they still have ammo tomorrow.
Yes, some profit taking and some pre-functioning by the option mm. If volume continues, this can rise tomorrow but if it is gone they may pin it at $75 or lower.
Did you really hold GOOG? I don't really see how you managed to sell at $80.00 when GOOG ipod at $85. It went straight up to $100 very quickly. There was not much of a pause until it got to around $400.00
Are you saying this for emphasis? It wasn't at $80.00 in its public life.
Also on top of that comparing GOOG at 85 to fb at 85 are apples and oranges. FB has 10 times as many shares as GOOG did at that time.
Now you could have said that you sold MSFT at a $1.20. The point is that FB is going to do well but it is not at the beginning of its growth curve like GOOG. With the shares of aquisitions, it will be at a cap of $240 billion.
There may be room for more growth but it is not anywhere near GOOG at its ipo price. FB is becoming one of the largest cap stocks in the market.
I own a company. I have sold on Amazon and eBay and I have also used Alibaba. FB is not set up to compete with either of aformentioned. Facebolok is for brand. people dont go on Facebook to buy something. They go on Facebook to socialize. QED
If I am looking for a used big machine like a Haas or an Okuma, I will go to Ebay. If i am going to buy a hard drive for my computer, I will go to Amazon.
If I need an extrusion profile whether it is from the US or China, I will go to Alibaba or I will source it myself. I will not go to a vague description or try to follow brand because it will be a wild goose chase.
The big thing that Facebook lacks is the functionality and the network to make it possible at this point in time for me to search for a product source. On he same token I cant find industrial items on Amazon but I can find them on eBay. I therefore go to eBay and don't even bother and search on Amazon for industrial items.
It is called niche markets.
Facebook is what it is. Their efforts are geared towards social functions not world trade. Alibaba has the network and Facebook doesn't. Facebook is brand and Alibaba is utility.
I just think you are trying to tally ways for Facebook to make money to justify your own position instead of looking at your stock rationally and seeing what it does. You are basing your conviction on what you want Facebook to do as opposed to what it actually does.
Facebook competing in world trade with Alibaba is ludicrous.
Being long the higher strike could be the same as buying twice to cover the short position if the stock does not rise..
Technically it is somewhat good if you buy a short term option after earnings but if you buy an otm option the advantage is negated by overpaying for the price of the option (which is typical with otm contracts). While the aforementioned diagonal it works well with a short term rise so does the current position because he can burn theta out of all the calls very quickly.
A diagonal with shorter term long call is not much more than just buying a call and leaving the position in stasis. It definitely does not match his expectation of a drop.
FB does not do the same thing as Alibaba.
FB is not and most likely will never be a retail site. If you have used Alibaba, you know it is a site to find trading partners and is not a site to buy online.
Facebooks platform is pretty far from Alibaba and Facebook is not in China so it would be hard for them to compete.
You are dreaming of ways to make the stock go up. :D Let Facebook figure it out.
Whose backbone is it going to be on? Or are they going to build their own towers or carry it on power lines?