When the Facebook Inc (NASDAQ:FB) initial public offering came out, it saw strong demand from retail investors, mom and pop individual shareholders, and this was one trigger for professional options traders to lick their chops in anticipation of a selling event. Facebook’s IPO saw tremendous put buying When the options contracts were launched shortly after the IPO, what was heavily rumored to be a “retail focused” offering saw tremendous put buying, or bets the stock would fall in price. Early trading showed put buying was taking place in “block trading,” usually undertaken by funds and institutions. On the back of what…
As Alibaba Options Open Monday, "Another Facebook" Unlikely
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.