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Are You Ready for Facebook Options?

Facebook
Juan Mabromata | AFP | Getty Images
Facebook

That was quick.

Barely a week after going public, options are begin trading this morning on Facebook. Based on the experience of Groupon, pricing could be bearish as investors buy puts in hope the social-networking giant will continue to fall.

According to the plan, the initial set of Facebook options will have standard monthly expirations in June, July, September, December, January, and January 2014. Short-term weekly contracts will be added this Thursday, with an expiration of June 8. Strike prices will range from $16 to $49, in $1 increments.

Additional News: Citigroup Loses $20 Million on Facebook Trades

Additional Views: Facebook Short-Sellers in Front of ‘Freight Train’: Analyst

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Options Trading School:

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Disclosure:

David Russell is a reporter and writer for OptionMonster. Russell has no positions in Facebook.

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