Will Facebook Rock Our World Today?

[sfdragonboy]

https://www.forbes.com/sites/kathleenchaykowski/2017/05/03/facebook-first-quarter-earnings-what-to-watch/#275538d174bb

[wuqijun]

Come on FB! Rock their world, slap them silly and catch them breathless

[intangible]

@marcus335

When you’re up big, risk management is key. Sometimes I sell the stock and hold options for earnings. That way my downside is limited. It works well when volatility is low. It’s cheap to do a call spread

Any good resources for novices to understand how to use options and call spreads?

[wuqijun]

It is best not to use them at all. No matter if you’re a novice or an expert.

[marcus335]

@intangible

@marcus335

When you’re up big, risk management is key. Sometimes I sell the stock and hold options for earnings. That way my downside is limited. It works well when volatility is low. It’s cheap to do a call spread

Any good resources for novices to understand how to use options and call spreads?

There are very few books on it, because it’s not popular enough to sell in volume. We covered it in grad school. A text book is probably your best bet.

[hanera]

@intangible

Any good resources for novices to understand how to use options and call spreads?

So many websites on options. For beginners, only need to know sell covered calls against your shares to make extra on top of dividends or short puts to buy shares at lower price. Brokerage would only approve level 1 for novice which usually only allow selling covered calls, some allow short puts.

[intangible]

@marcus335

There are very few books on it, because it’s not popular enough to sell in volume. We covered it in grad school. A text book is probably your best bet.

Any pointers even to textbooks?

@hanera

So many websites on options. For beginners, only need to know sell covered calls against your shares to make extra on top of dividends or short puts to buy shares at lower price. Brokerage would only approve level 1 for novice which usually only allow selling covered calls, some allow short puts.

Any pointers to a website you feel is good? I honestly feel a little lost in the world of options.

[hanera]

@intangible

Any pointers to a website you feel is good? I honestly feel a little lost in the world of options.

Right from the authority Options Overview by The Options Clearing Corporation.

Can be very confusing when many information are presented to you since you don’t know what to read. The only thing you need to know at this point is how to sell covered calls

Once you understand the hows, risks and rewards, then open an option account with your brokerage firm, most of them allow online applications… you have to answer tons of questions

The first book you want to read is Options as a Strategic Investment by Lawrence G. McMillan, after you are comfortable with selling covered calls (and shorting puts if your brokerage firm allow it).

[intangible]

Thanks for the pointers!

[manch]

Not sure FB will rock our world but TSLA will most definitely rock. Problem is I don’t know in which direction.

[marcus335]

TSLA is always the same. Announce disappointing numbers but wow people with guidance. The stock goes up.

[wuqijun]

Who here is a TSLA stockholder? Me 1

Who here is a FB stockholder? Me 1

[sfdragonboy]

https://finance.yahoo.com/news/facebook-first-quarter-earnings-may-2017-195007076.html

[marcus335]

I own FB. FIT is up almost 7% despite a 40% revenue decline. I guess expectations were that low. DATA is up 8% (Seattle company).

[wuqijun]

Wow. Fit is an interesting one. I hope nobody lost their shirt on that. I did with Twitter and jcp.

[myo]

@wuqijun

Who here is a TSLA stockholder? Me 1

Who here is a FB stockholder? Me 1

Ditto on both. Have been buying TSLA & FB for couple of years now slowly whenever it is a dip especially on TSLA.

[harriet]

I’ve been watching FIT, but the price is not low enough for me to create an entry.

[marcus335]

I know pre-IPO employees at FIT that have options at a $7.xx strike price. I think that was the last strike price before they went public.

[druid]

FIT has bet the house on its smartwatch. If that flops, they are toast. I feel for the employees who are underwater on their options.

[harriet]

FIT’s new Charge 2 is better than Apple Watch Series 2, especially the battery life, but people don’t cycle through their watches as often as their phones.