If these are W's,it will be worth 2.50 if FB opens at $75.00. It will be worth as much as your contracts are itm. If for some reason it opens less than 72.50, it will be worth close to zero......Doesn't look like that will happen.
If the stock is not above 80, it will be worth zero to nickles and dimes.
If the stock is 81, your option will be worth $1.00 and a little change
If the stock is 85 your option will be worth $5.00 and a little change
There is no intrinsic value left because of volatility crush so you will have rely on the market participants and hope they push it above $80.00.
Options are hard bets through earnings but I hope you get 80+ out of it.
It will depend on where it opens tomorrow but if it is under $77 then there wont be much premium left. I think you did the right thing but you can always second guess after we see what happens tomorrow.
The dilutive amount of shares used to calculate the eps was 2615 vs 2609 Q1 2014. The purchases have not been factored in yet. This is from the SEC filing today. The number of shares in the deals are around 275 million. Those should probably be factoring in starting next quarter.
Cash positions are considered investments and often bare no expense. The shares used in the calculation or EPS are added on wieght average basis. They are averaged in over the year. IE if the outstanding shares due to the deal are 200M (fictitious number) then they would be put in the number of shares used for eps at 50 million per quarter
The outstanding shares will be immediately applicable to the cap provided everything is inked and all regulatory hurdles are done.
$.42 is a non-GAAP number and that is not used in the calculation of trailing PE. The GAAP number of $0.30 which is used in trailing PE. It will like be mid 75 to about 80. Forward multiple will depend on analysts.
A lot of people are selling 71. Since it is coiling, there should be a good break either way. I expect a last minute push before the market closes.
Good job on selling the calls and taking the profit. If it goes way up, we kick ourselves but if doesn't then there is money in the pocket.
The thing I don't like is when I make thousandths.
Serious retail revenue is a long ways off for FB. Without having traction, the numbers don't mean anything. Remember Facebook gifts?
FB is not a retail site so MAU's mean nothing when trying to compare to Paypal or Amazon. If and when Buy or Bookmark gain traction, then maybe the comparison can be made.