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...
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