FB structured products available today

Discussion in 'Stocks' started by m22au, May 18, 2012.

  1. m22au


    If and when FB has a big pop on the open (let's say, to $50 or more), I'd like to short it. But I assume that there won't be any shares to short until some time next week.

    I see that there are quite a few FB structured products available for trading, mainly issued by UK and other European institutions.

    Most of these look like relatively complex options (eg. with knock-outs), compared to the easier to understand vanilla options that I am more familiar with (ie. calls and puts).

    Are you planning to trade any of these FB structured products, and if so, which ones do you plan to trade?
  2. How can banks quote these without any real hedging options. They must be priced at stupid levels.
  3. m22au


    agree, but obviously once FB begins trading, they'll be able to hedge, and so hopefully the spreads on the products will tighten.
  4. Well, they may not be able to short (if necessary) and they will have no basis to determine what the realized vol should be. So my guess is that they are buying vol at like 16 or something stupid.
  5. To have a meaningful discussion, OP (assuming he's for real) needs to offer examples of instruments he's considering, with the indicative pricing he's seeing.
  6. m22au


    OK, I'll give in to my curiosity.

    Why do you have doubts that I'm not "for real" ?
  7. Because you haven't offered examples of instruments you're considering, with the indicative pricing you're seeing. What part of that is unclear?
  8. m22au


    The part that is unclear, is that your argument does not explain your
    "not for real" premise.
  9. Do you have a term sheet for any of these notes? I'd be curious to see one.
  10. m22au


    Don't have a term sheet, there are a wide range of products available, and I only discovered them this morning.

    Issuers include CBK ING BNP RBS UBS amongst others.
    #10     May 18, 2012