Shorting Facebook through Put Options?

[trolly]

I'm tempted to buy puts on facebook...

it seems like it could be easy to make some money

But maybe I could be wrong?

[trolly]

Wow facebook down again to $25.87

[Idiot]

Depends when they expire and if they are in the money or out of the money when you buy them. Get one with a strike price at the money a month from now and see if you profit. Your trade needs to offset the trading fees to make it profitable. It may have already ran its massive tumble, but may slip a little more but slowly. Read what the equity analyst are saying.

[butane99]

I dont think this is a great idea...the price of fb is starting to stabilize. I would avoid putting any money on fb, regardless of the position

[Duke Zion]

Buy what now?

[The Explanation]

Yeah I don't think it's really going to go any lower.

[HampTheToker]

Originally Posted by Duke Zion

Buy what now?

[Issue313]

Go for it dude, fb still is at something like 90 P/E, while most good companies are between 10 and 20. I hear a fair value for fb stock lies at less than $10

[The Explanation]

Originally Posted by Issue313

Go for it dude, fb still is at something like 90 P/E, while most good companies are between 10 and 20. I hear a fair value for fb stock lies at less than $10

I feel like the P/E ratio doesn't account for facebook's ubiquitous nature. Facebook is entrenched in everything now, and I don't think it's going anywhere any time soon despite previous social networks doing so. Not to mention that it's nowhere near as monetized as it could be. The IPO was so high for a reason, the potential for future earnings is enormous.

[rustyshackleford420]

Originally Posted by The Explanation

I feel like the P/E ratio doesn't account for facebook's ubiquitous nature. Facebook is entrenched in everything now, and I don't think it's going anywhere any time soon despite previous social networks doing so. Not to mention that it's nowhere near as monetized as it could be. The IPO was so high for a reason, the potential for future earnings is enormous.

But many users aren't happy with the way facebook uses their personal information. It's certainly not about to crash and burn, but I think interest is going to slowly taper. Regardless of what they do, unless they drastically change the service offered.

Also what new ways could they monetize (that wouldn't piss of the majority of the user base)? Placing more ads is obvious, except the ads they already do have don't really get clicked on.

[Crashwangdoodle]

Originally Posted by The Explanation

I feel like the P/E ratio doesn't account for facebook's ubiquitous nature. Facebook is entrenched in everything now, and I don't think it's going anywhere any time soon despite previous social networks doing so. Not to mention that it's nowhere near as monetized as it could be. The IPO was so high for a reason, the potential for future earnings is enormous.

Do you not read the news?
There's been a shit-storm over selective disclosure of their future profits, something about revising them due to more people accessing from mobile sources (so no ad revenue?)

FB is riddled in bullshit, i feel bad for any retard that poured money in at the start. This shit is murky as fuck. I'm stayin' away dawg.

At least read up on your shit before you invest!

[adepti]

Originally Posted by The Explanation

I feel like the P/E ratio doesn't account for facebook's ubiquitous nature. Facebook is entrenched in everything now, and I don't think it's going anywhere any time soon despite previous social networks doing so. Not to mention that it's nowhere near as monetized as it could be. The IPO was so high for a reason, the potential for future earnings is enormous.

Facebook is one of those stocks that will shine if the economy shines, conversely, if the economy continues to stink, so will the stock.

Initially after the IPO, FB sold at 62X earnings, which is massively inflated for a stock with no real fundamentals.

Many of the insiders of the stock dumped their shares to the fools in the market for $37, making a handsome profit

However, the time to short FB was right after the IPO. Buying puts now is like gambling

If the economy gets worse, investors will certainly look for stocks with only good fundamentals and technicals. P/E ratio will definitely come into focus, regardless of how popular FB is. Investors aren't going to be willing to put their hard earned money into a stock just because its the latest fad. They want stocks that are attractive on a fundamental level (with earnings taken into account)

[trolly]

Man I'm glad I didn't gamble my money and buy puts. Since the stock moved with the market and moved up. Thanks everyone for the advice and input

[The Explanation]

Originally Posted by adepti

Facebook is one of those stocks that will shine if the economy shines, conversely, if the economy continues to stink, so will the stock.

Initially after the IPO, FB sold at 62X earnings, which is massively inflated for a stock with no real fundamentals.

Many of the insiders of the stock dumped their shares to the fools in the market for $37, making a handsome profit

However, the time to short FB was right after the IPO. Buying puts now is like gambling

If the economy gets worse, investors will certainly look for stocks with only good fundamentals and technicals. P/E ratio will definitely come into focus, regardless of how popular FB is. Investors aren't going to be willing to put their hard earned money into a stock just because its the latest fad. They want stocks that are attractive on a fundamental level (with earnings taken into account)

Yeah I agree with this. I think it's settled now but it wouldn't be insane to say it would go down further. I just don't think it will, and to bet on it doing so would be more of a gamble than I'd be willing to make.

[Issue313]

Originally Posted by trolly

Man I'm glad I didn't gamble my money and buy puts. Since the stock moved with the market and moved up. Thanks everyone for the advice and input

You shoulda bought those puts faggot, fb is down to $19 and still falling
http://www.cnbc.com/id/48705591