Media is trying to save FB and discourage the retail investors from selling so that the big guys can get out with being hurt less. This was in the first page of CNN http://money.cnn.com/2012/07/26/technology/facebook-earnings/index.htm?hpt=hp_t1
yeah well facilitating serendipity helps.. i'm with you..a good risk to reward ratio and some intuition.. if you could be right alot of the time.. and were smart about the options trades you made.. and on top of that weren't scared to buy deep otm options on the occasion.. It just doesn't make intuitve sense for people to take more losses then wins to make super big wins.. they would rather pick up nickels in front of a steam roller..
Market is on fire and FB is tumbling so bad. You need $250 margin to sell one naked Call 26 for August 17. The gain is 10% 3 weeks. No way FB can climb up to 26. As always there is a risk. DYODD
A lot of risk for $25 less commissions? You could tune in next week and watch FB short squeeze back up to 27! FB seems to want to be above $23 so far, after all the bad news is already out. So an alternative trade might be to Sell an August 23/22 Bull Put Spread for a $35 credit, with a Max Loss of $65. If FB closes at 23 or above on August 17th you'd make +53.85%. But I'm not doing either trade. Will just continue praying for my Iron Condors...
I'll bet you $1,000 that we touch $26, using delta*2 as the touch probability as the odds you lay. Deal?
Let's bet with no money. I will call you a legend if FB closes above 26 on August option expiry date. I sold lots of 27 and 28 calls expiring today. I sold them at 1.5 and 2.2 just a few days ago. I have also sold 26 Call August for 3.2 and then it went to 3.8 but I kept my cool and did not tap out. I am selling more and more of FB naked call 26 today. FB tends to gravitate towards 24 or 23 today. So far 24 looks higher possibility. Just because of option.