FB is not a value stock it is a growth stock. AMZN will not push FB.........The market will push it either way depending on its beleif of the growth story presented.
How much do you lose across the bid ask spread and commish?
FB is not a value stock. It is a growth stock. Value does not drive FB's pps and it is not by any measure undervalued.
Please explain your math. You are making a comparison that seems to say, "LNKD a little more than doubled in 52 weeks so FB should also double in 52 weeks". There seems to be a disconnect in your logic as you have FB going up 5 times.
You might also note that FB has already almost tripled in less than a year and LNKD is growing much faster than FB and is at a quarter of the cap of FB. The big thing is LNKD won't drive the value of FB.
You should just state that you believe that FB is going to $250 because that is what your opinion is. Your statement did not support why you believe FB is going to $250.
The cost for atm November contracts are $3.00. I guess that is not too much. These would give you dollar per dollar protection of a drop below $50.00. ie if your stock goes down by one dollar then your put goes up by a dollar. You may want to see if it goes higher and buy some before earnings but those calls are likely to be around $5.00 pre-earnings.
This is straight up long calls and would protect your investment until the end of the third week in November.
This is just the way its moving now and the trend should be steeper in pre-earnings. A beat of probably around 3 to 4 cents is priced into the stock. To continue the current trend it will need a large beat like 6 to 8 cents. A meet is probably a small haircut and downward trend for awhile and will likely not have any analyst support. A miss is a big correction.
That is what I see. I don't know how they will do and neither do the analysts who at this point are just making stabs in the dark. Good luck
The spread is a lot but it will be less thin if you trade it and there will be more options open when it is closer to earnings. PNQI is better but will move less due to its weighting. What happens to those paying a buck for an option over $10 otm? If it doesn't move 10, they are toast.
One of the reasons AMZN has the cap it does is because it has revenue of 72 billion and is still growing. Investors believe that the investments in infrastructure that AMZN is making right now will mean big profits in the future.
FB has better margins but revenue that is a fraction of AMZN'S. So you don't need to agree on Amazon's business model but its not going to drive FB. They are two seperate companies who have close to the same cap. They however are going to go up or down based on their own conviction.
As another person said......You also can't compare stocks on price. Lastly, FB is not a value stock.......It is a growth stock and it will grow based on how much investors agree of its growth story. For now, FB is all momo and after earnings it will have a new story (good or bad) so stay tuned.
FB is getting quite high. So are its options. Both calls and puts Nov or labut a 125ter are at nose bleed prices. You can't get the leverage to account for the risk.
You might look at SOCL or PNQI which are etf's heavily weighted FB. SOCL has a lower Morningstar rating but a higher weight of FB. PNQI covers the internet sector.
These bets give you a lower risk bet in earnings if you buy just straight stock. It is also a way to invest in options without the high implied volatility premium that FB options have right now.
I would not touch straight long FB options through earnings with a ten foot pole. Now you have options to trade with less risk. GL
You can sell your contracts at any time before they expire. You sell to close. All I was saying is if your contracts are out of the money at expiration they will have no value. Good luck
On the expiration, the option will have no valu if it is otm (out of the money). FB may go above 52 which should be around your break even. I would suggest watching options before buying them. Otm near term options are hard to trade if the stock does not hit your target.
There is plenty of float. I think you meant that demand excedes supply. Float means the number of shares available to trade and FB has a very large float.
How was 50 yesterday and today? I don't think you know how to read charts.......jmho:)