Don't Get Lulled by Facebook
As for a Facebook (FB) trading plan, I believe that taking half the short off the table either today or shortly after the open would be appropriate. Then I would be looking to take off the rest of the put position by close of business on Tuesday or Wednesday. The stock is actually acting fairly well today, but I wouldn't let that inspire a lot of confidence.
Look at the chart of Facebook. I've circled the day before the last major lockup release, which occurred in August. The stock actually looked good the day before the release. It had dropped the prior two days, and I was lulled into a false sense of security that the lockup release had been priced into shares. I even went slightly long into the release. Ten percent lower, it was quite clear I had been taken in by that single day's action. Facebook was at support then, as it is now....432 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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