The Hoodie Factor: Facebook Breaks $20, Options Say $15 Is Next
Facebook, Inc. (NASDAQ: FB) is obviously about as silly of a company as a group of billionaires could run. That is what the market is telling you. Facebook as a growth company should have no real care about what Mario…
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Facebook shares have traded over 39 million shares as of 2:00 PM EST and the drop of $0.90 is actually down by 4.3% to $19.98. Shares hit a low of $19.91 earlier today and the prior post-IPO range had been $20.84 to $45.00.
It was just in recent days that we saw that trading was active in the PUT options in August down to the $19 strike price. Now that is down to the $18 strike price for August. What is bad is that if you go out to the September options expiration the PUT option volume is active down all the way to the $15 strike price.
Facebook keeps tanking, and options traders are speculating that Facebook shares are heading even lower. This is what happens when you get an eccentric CEO whose greatest piece of garb is bringing a hoodie to Wall Street.
Also, let’s not forget about Zynga, Inc. (NASDAQ: ZNGA) where shares hit a new low and are down 3.7% at $2.71 today. Global X Social Media Index ETF (NASDAQ: SOCL) is down 1.5% at $11.90 and shares hit a new low of $11.88 today.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.