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I'd buy puts - Zuckerberg outplayed them, I don't think they know what they're doing. I don't think they'll be around much longer, it's also interesting that p
by fossuser 8y ago
I'd buy puts - Zuckerberg outplayed them, I don't think they know what they're doing.
I don't think they'll be around much longer, it's also interesting that puts a couple years out are pretty expensive so the market doesn't really think there's much hope for them either.
- throwawaymath 8y agoCalls and puts are (both) almost always significantly more expensive several years out compared than they are in the present. The longer your time horizon the more uncertainty you have to build into your price, which means you need to account for greater volatility. You shouldn't interpret that as optimism or pessimism in the market, because both long and short derivatives are expensive.
- alexnewman 8y agoNo he means the calls are cheap and the puts are expensive. I agree, the smart investors have already put the pressure on
- throwawaymath 8y agoAh, fair enough. I see that reading now.