is there a way to bet that facebook shares will decrease in value?
A lot of people seem certain it is garbage; can they make money with that prediction if they are right?
short selling = yes
These are not publicially traded. So no. At least not directly with options like you suggest.
well, yes fb has only private shares
but FB is nearing the SEC reporting threshold (500 shareholders)
so they either do an IPO and get everyone to buy in and then show how much of a sham it all is or get forced to show everyone how much of a sham it all is then try some means of raising capital
is there a way to bet that facebook shares will decrease in value?
A lot of people seem certain it is garbage; can they make money with that prediction if they are right?
short selling = yes
These are not publicially traded. So no. At least not directly with options like you suggest.
well, yes fb has only private shares
but FB is nearing the SEC reporting threshold (500 shareholders)
so they either do an IPO and get everyone to buy in and then show how much of a sham it all is or get forced to show everyone how much of a sham it all is then try some means of raising capital
my bet is on the first
The current deal is Goldmann is acting as a single investor to get $500 million into facebook from lots of people (with a 2 mil minimum) to avoid the 500 shareholder limit and delay an IPO another couple years.
RiemannLives on
Attacked by tweeeeeeees!
0
Options
Powerpuppiesdrinking coffee in themountain cabinRegistered Userregular
edited January 2011
yeah i don't trade stocks; i was just curious. Do you think a lot of people will do the options thing?
yeah i don't trade stocks; i was just curious. Do you think a lot of people will do the options thing?
Not if they are smart. Options are even more like casino gambling than just buying shares: If you guess right (the value goes up enough for a normal option or drops enough on a put) then it makes you more money than if you had just bought those shares and reaped the difference.
But if you bet wrong (or if you bet right but not right enough) then they are worth absolutely nothing.
If you buy a share at $100 and sell it at $99 you've lost a dollar (plust transaction fees). If you buy an option (for much less than $100) betting a stock will rise above $100 and it ends up at $99 you have nothing whatsoever.
Not so much the way it works, I just can't really conceive a big picture of the options market.
reading a bunch about Black Scholes will probably help
i mean, it's kind of like a shadow stock market, tied to the volatilty of a stock and the perception of a given statistical outcome of its value in the future
it's wildly speculative and entirely one sided
in order for someone to win someone must lose
but at the same time options trading reduces volatility in returns because of its hedging effects
like if i have a call option on something, say IBM, and it winds up at call time that IBM has tanked, I burn it
sure I lost some on the fees that I paid the other party to close the conract but I didn't lose my shirt like if I had been trading straight up common shares
yeah okay so you think options are bad becasue they are really swingy
i know they are really swingy, tyrannus said so above
i am more asking if the sort of thing described is common
remember i dont trade stocks; my interest is academic
I think they are bad for most people because they represent much more leverage than buying stocks or funds. If your information is wrong you lose everything rather than some. And most people do not have the information to invest under such conditions.
Not so much the way it works, I just can't really conceive a big picture of the options market.
reading a bunch about Black Scholes will probably help
i mean, it's kind of like a shadow stock market, tied to the volatilty of a stock and the perception of a given statistical outcome of its value in the future
it's wildly speculative and entirely one sided
in order for someone to win someone must lose
but at the same time options trading reduces volatility in returns because of its hedging effects
like if i have a call option on something, say IBM, and it winds up at call time that IBM has tanked, I burn it
sure I lost some on the fees that I paid the other party to close the conract but I didn't lose my shirt like if I had been trading straight up common shares
That makes sense.
PP: I don't know how many people trade options but it is a relatively lively market.
Feral on
every person who doesn't like an acquired taste always seems to think everyone who likes it is faking it. it should be an official fallacy.
I learned about day trading in the late 90s from a psychologist who talked about the stock market entirely from the perspective of perceptions and social behavior. So what you're saying, Gooey, makes sense to me.
Feral on
every person who doesn't like an acquired taste always seems to think everyone who likes it is faking it. it should be an official fallacy.
and I don't blink
and I just keep going
and I don't blink
and I keep on going
and I don't blink
and I just keep going
and I don't blink
and I keep on going
Feral on
every person who doesn't like an acquired taste always seems to think everyone who likes it is faking it. it should be an official fallacy.
So, did anyone else buy their $40 PS3 from Target? They're not going to honor this, but it's a fun thought. On the off chance they do, yay!
On the opening day of the Wal-Mart I work at someone had mispriced PS3s as $99. We honored the first customer to notice the error then immediately changed the labeled accordingly.
Posts
well, yes fb has only private shares
but FB is nearing the SEC reporting threshold (500 shareholders)
so they either do an IPO and get everyone to buy in and then show how much of a sham it all is or get forced to show everyone how much of a sham it all is then try some means of raising capital
my bet is on the first
no no, this was Will's birthday
so sorry but we haven't the room to accommodate yours as well
The current deal is Goldmann is acting as a single investor to get $500 million into facebook from lots of people (with a 2 mil minimum) to avoid the 500 shareholder limit and delay an IPO another couple years.
Not if they are smart. Options are even more like casino gambling than just buying shares: If you guess right (the value goes up enough for a normal option or drops enough on a put) then it makes you more money than if you had just bought those shares and reaped the difference.
But if you bet wrong (or if you bet right but not right enough) then they are worth absolutely nothing.
If you buy a share at $100 and sell it at $99 you've lost a dollar (plust transaction fees). If you buy an option (for much less than $100) betting a stock will rise above $100 and it ends up at $99 you have nothing whatsoever.
too bad!
i know they are really swingy, [strike]tyrannus[/strike] gooey said so above
i am more asking if the sort of thing described is common
remember i dont trade stocks; my interest is academic
reading a bunch about Black Scholes will probably help
i mean, it's kind of like a shadow stock market, tied to the volatilty of a stock and the perception of a given statistical outcome of its value in the future
it's wildly speculative and entirely one sided
in order for someone to win someone must lose
but at the same time options trading reduces volatility in returns because of its hedging effects
like if i have a call option on something, say IBM, and it winds up at call time that IBM has tanked, I burn it
sure I lost some on the fees that I paid the other party to close the conract but I didn't lose my shirt like if I had been trading straight up common shares
I think they are bad for most people because they represent much more leverage than buying stocks or funds. If your information is wrong you lose everything rather than some. And most people do not have the information to invest under such conditions.
That makes sense.
PP: I don't know how many people trade options but it is a relatively lively market.
the "no true scotch man" fallacy.
ba-zing
the "no true scotch man" fallacy.
http://www.youtube.com/watch?v=2DLq4EtSfzU
the "no true scotch man" fallacy.
or did it not qualify or something
however
they all live way far away since i moved
that would require it to have a good score in the first place.
i will punch you
hate
the "no true scotch man" fallacy.
where did you move to
very ungentlemanly.
I may still make a trip to the east coast sometime soon.
the "no true scotch man" fallacy.
tight frame of kung fu action so you cannot see anything
close up of bruce lees eyes
tight frame of kung fu action
etc
you are so going to eat pastrami
I like trance.
Calling Daft Punk trance sullies its good name, though.
It's not quite trance.
Not that it matters.
the "no true scotch man" fallacy.
-_- son i am dissapoint
Because I'm in love.
the "no true scotch man" fallacy.
Listen to more beep boops.
the "no true scotch man" fallacy.
and take mind altering substances?
I prefer guitars. I like guitars.
Guitar solos make me hard.
and I just keep going
and I don't blink
and I keep on going
and I don't blink
and I just keep going
and I don't blink
and I keep on going
the "no true scotch man" fallacy.
Well yes, but that's not necessarily related.
the "no true scotch man" fallacy.
On the opening day of the Wal-Mart I work at someone had mispriced PS3s as $99. We honored the first customer to notice the error then immediately changed the labeled accordingly.