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Somebody Thinks Their Facebook Shares Are Going To Take A Hit

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So he or she is buying some protection: $8.3 million worth.

The player paid about $8.3 million for a “massive” chunk of put options, “one of the largest FB trades this year,” according to Henry Schwartz, president of Trade Alert LLC, an options data provider….

Monday’s trader purchased a fresh slug of 30,000 put options that grant the right to Facebook’s shares at $45 by January 2015. With Facebook’s stock at just north of $60, the options trade is most profitable should the stock tumble 25% over the next eight months….

Brian Overby, senior options analyst at brokerage TradeKing, called the trade “bullish but nervous,” since the options trader appears to be hedging the stock position but still holding on to the shares….

“If this person owned Facebook stock since inception, it’s nearly doubled,” he said. “You can kind of understand [a protective options trade] with the run that Facebook has had and the recent volatility,” he said.

Trader Sets Up ‘Massive’ Options Bet Against Facebook [WSJ MoneyBeat blog]



Beloved Institutions—Facebook And Banks—Discuss How To Increase Their Popularity

Mark Zuckerberg wants to know your credit card balances. What could possibly go wrong?

So Things Hit A Rough Patch And Facebook Is Ready To Throw In The Towel?

Is that how it is? NYSE Euronext and Facebook have exchanged phone calls and e-mails about the possibility of the company switching its listing from Nasdaq OMX Group, according to a person familiar with the matter. Facebook, which listed on the Nasdaq Stock Market on May 18 after completing the world’s biggest initial public offering by a technology company, is listening to the New York Stock Exchange, said the person, who asked not to be named because the discussions are private. Facebook Said To Have Talked With NYSE About Exchange Switch [Bloomberg]