Thursday Madness In Front Of Facebook IPO
it's not easy reading about the markets or finance in general without running into 5000 facebook articles or posts. I have received a lot of questions about the IPO as well. You won't find me buying it at the open if at all tomorrow. IPOs are mostly an insiders game and hanging out on the outside is not something I take lightly. I know the people on the other side of the trade have spent a lot of sleepless nights trying to figure out how much they can sell shares for. They are not about to let the shares go for one penny below what they believe the market will pay.
Companies like Sirius XM (SIRI), Sodastreem (SODA) and other novelties give me pause in my attempt to handicap facebook. Tomorrow happens to be option expiration day and I will focus my time and efforts towards finding mispriced options. I expect to find many due to the lack of normal attention caused by facebook.
I hedged my MAKO position, but I am also moving closer to pulling the plug on it. Another leg down and I will likely hit the road. I don't need a loser on my books for long. I timed the option hedge position well, hitting almost the top of the move. Now if the stock can hold steady the time decay will turn it into a winner.
Best of luck to anyone who wants to try their luck with facebook tomorrow. I will likely be in www.TheStreet.com live facebook IPO blog talking about the pros and cons of the trading as it happens, with one eye on the options market.
I am watching Sprint for another long entry.