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.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.