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3 Derivative Facebook IPO Trades: Jon Najarian

Tuesday, 15 May 2012 | 1:51 PM ET

Just because Facebook doesn’t start trading until Friday, doesn’t mean you can’t game the excitement right now.

But rather than look at other social media stocks, OptionMonster Jon Najarian thinks the best plays are companies that provide services that Faecbook rivals will need how to compete.

And Najarian says the following names are his favorites.

AT&T

Rackspace

Citrix

Najarian's Trade Thesis

Smaller more niche sites will be forced to compete with Facebook, Najarian says.

However, few of those rivals are going to have the necessary massive data centers, like Facebook has.

As a result, Najarian thinks those companies will turn to 'the cloud' and all three companies mentioned above offer the types of services that will be needed.

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NEW SLIDESHOW: The Facebook IPO: A Fast Money Primer

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Facebook: A Passing Fad?
According to a new CNBC-AP poll, nearly half of the people that use Facebook say it's a passing fad. Jon Najarian, TradeMonster.com founder and the FMHR traders, share their trade on the upcoming tech IPO.



Posted by CNBC's Lee Brodie

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Trader disclosure: On May 15, 2012 , the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Stephen Weiss is long AIG; Stephen Weiss is long JPM; Stephen Weiss is long VZ; Stephen Weiss is long WLP; Stephen Weiss is long NAV; Stephen Weiss is long HK; Stephen Weiss is short CHK; Stephen Weiss is short JCP; Stephen Weiss is short JEC; Brian Kelly is long T; Brian Kelly is long VZ; Brian Kelly is long KRE; Brian Kelly is long WFC; Brian Kelly is long USG; Steven Grasso is long ASTM; Steven Grasso is long AVAV; Steven Grasso is long BA; Steven Grasso is long D; Steven Grasso is long FRO; Steven Grasso is long LNG; Steven Grasso is long MHY; Steven Grasso is long NUAN; Steven Grasso is long MO; Steven Grasso is long PFE; Steven Grasso is long S; Steven Grasso is long XLU; Steven Grasso is long ZAZA

For Jon Najarian
Jon Najarian is long call spreads DMND
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Jon Najarian is long call spreads V
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For Alan Rifkin
Barclays Bank PLC and/or an affiliate has received compensation for investment banking services from HD
Barclays Bank PLC and/or an affiliate has received compensation for investment banking services from LOW
Barclays Bank PLC and/or an affiliate has received non-investment banking related compensation from HD
Barclays Bank PLC and/or an affiliate has received non-investment banking related compensation from LOW
Company has been an investment banking client of Barclays: HD
Company has been an investment banking client of Barclays: LOW
Company has been a non-investment banking client of Barclays: HD
Company has been a non-investment banking client of Barclays: LOW

For Deborah Weinswig
Citigroup Global Markets Inc. or its affiliates beneficially owns 1% or more of any class of common equity securities of JCP
Ciitigroup Global Markets Inc. or its affiliates beneficially owns 1% or more of any class of common equity securities of TGT



CNBC.com with wires.

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