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How do I bet against Facebook on the stock market?
10-15-2012, 07:44 PM
Post: #1
How do I bet against Facebook on the stock market?
I think Facebook is going to crash and burn-literally. I bet within 1.5 months it will be at 20 dollars a share or lower. How would I invest to bet against it?

I do NOT want to do these 2 options.

1. Invest in a different social network service. I think they are all flat and obsolete due to new mobile devices.
2. ETFs that attempt to invest in a counter 'basket' of stocks. I think facebook will Fail all by itself, without having positive or negative effects on anyone else.

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10-15-2012, 07:53 PM
Post: #2
 
You would short their stock. This is where you borrow stock from a broker and immediately sell it, with the understanding that it must later be bought back (hopefully at a lower price) and returned to the broker. Short selling is a technique used by investors who try to profit from the falling price of a stock.

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10-15-2012, 07:53 PM
Post: #3
 
Sell short (stock, Spread Bet, CFD).
Wait until options start and buy PUT or sell CALL
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10-15-2012, 07:53 PM
Post: #4
 
Facebook would definately bring Zynga along
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10-15-2012, 07:53 PM
Post: #5
 
I'll bet you can't for a couple of weeks unless you are really big (and then you wouldn't be asking this question).

a) Normally you just short the stock but I doubt anyone is going to let you do that for awhile. I hope I'm wrong, but I think most brokerages are not going to let you do it until they know it isn't going to cause them problems.

b) Buy a put/sell a call. I think FB options won't trade until a couple of weeks and only in very liquid ways if you can short the stock so people can hedge them.

c) Short single stock futures. Someone keeps posting that FB will begin trading single stock futures soon. I haven't checked that out and I think single stock futures in the US are a joke (that poster seems to think there is something very impressive about them).
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