FB - Earnings Oct 23, Tuesday. I recommend Calls. FB Oct 2012 20.00 calls @ $0.80 http://finance.yahoo.com/q?s=FB121026C00020000
Don't forget there will be massive insider selling next month, once the November restriction is lifted. I don't recall the exact date. Probably around mid Nov.
When GOOG was at $100.00 they had the same "problem". The analysts like to stir up fear with that excuse.
I'm not predicting anything. Just warning/reminding investors. The last 2 times FB investors were permitted to sell.... they did. And this 3rd and last time coming up will have massively more shares available for selling than the previous times. However, the price is now lower than before, so there may not be as much incentive to dump at this lower price. However, that is something to be aware of for mid Nov. We are still in Oct.
Insiders are probably going to hit any bid up on the news. It might spike higher but by the am it will be getting sold. imho
Earnings come out on Tuesday after the close. Another important date might be Monday Oct-29: http://money.cnn.com/2012/10/22/technology/social/facebook-earnings-stock/ As far as the end of insider selling restrictions mentioned before is concerned, it's on Wednesday Nov-14 (if I remember well). 1.2 bln shares will flood the open market.
FB - Earnings Oct 23, Tuesday. I recommend..... Puts Buy the Nov 19 put and sell the Nov 17 put for a net debit of $75. Price.....................P/L...................% 12.75..............$125.00.............166.67% 14.94..............$125.00.............166.67% 17.00.............$125.00..............166.67% 17.24.............$100.90..............134.53% 18.25.............$0.00..................0.00% 19.00............($75.00)...........-100.00% 19.54...........($75.00)............-100.00% 21.85...........($75.00)............-100.00% You could do both..... by calls and buy puts = Straddle/Strangle http://www.investorguide.com/igu-ar...-buy-straddle-option-investment-strategy.html http://www.investorguide.com/igu-ar...-buy-strangle-option-investment-strategy.html and then hedge with sells.
Right, any potential gap up in after hours is a bonus for current employees, although they have to wait until the 29th to dump their shares to the public. The remaining insiders get to sell a huge chunk on the 14th as you mentioned. Here's an excerpt from their 8K public filing with SEC: "We currently expect that two trading days following the announcement of our third quarter 2012 financial results, we will vest and settle outstanding Pre-2011 RSUs for which theservice condition has been satisfied and that are held by employees who are employed by Facebook through October 15, 2012. We currently expect to announce our third quarter results on October 23, 2012, which would result in an expected vesting and settlement date of October 25, 2012. The shares would be eligible for sale in the public markets as of market open on October 29, 2012, as described further below."