The Risks of Trading Options on Facebook

Listed stock options have not yet begun trading on Facebook. The anticipated date for the listing of Facebook option contracts is May 29th, according to a press release put out by the International Securities Exchange (ISE). Trading both puts and calls on FB will be tricky to start. In this video Brian Overby outlines some points to remember if you’re interested in trading option contracts when they are available in Facebook after the Initial Public Offering (IPO).

Brian Overby is TradeKing’s Senior Option Analyst

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Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options available at http://www.tradeking.com/ODD.

Brian Overby currently holds no positions in any mentioned securities at the time of this publication.

Online trading has inherent risk due to system response and access times that may vary due to market conditions, system performance, and other factors. An investor should understand these and additional risks before trading.

While implied volatility represents the consensus of the marketplace as to the future level of stock price volatility or probability of reaching a specific price point there is no guarantee that this forecast will be correct.

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