Increases in value when? When the stock price goes down
Decreases in value when? Loses value when stock prices go up
What price can you sell it at? Sell at the strike price
Premium is what you pay for the option contract
FaceBook
What happened!?!?!?!?
EPS was supposed to be $3.84 and came in at $3.67
Revenue beat. $33.67b vs $33.4b
Slowing revenue growth? Next quarter forecast is $27b and analysts wanted $30.15b
Advertising challenges from Apple’s new iPhone policy. $10b revenue hit this year.
“Reels” have become more popular but not as much ad revenue from them.
Dividing out sections on earnings showing apps, medical, metaverse numbers to give investors a better idea what is happening on specific sections of the company.
Spent 10b on metaverse. This is an investment into the future. Not “losing money” like it’s not successful.
Market doesn’t seem to see that FB is investing as a huge plus right now
Does all this justify losing 24% of their value? I don’t think so.
Metaverse investments is more transitory and will drive future growth higher.
Why isn’t it making up EVERY DOLLAR on the way down?!
Insurance: you pay a premium but you DON’T get it back when you get in a car wreck.
Delta – How much the option price will change per dollar that the stock changes.
So do we sell FB?
We can but we can also sell our put option and buy more shares at much lower prices.
When? We have to wait and see where the stock goes.
