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Twitter Options Open Over 25% More "Expensive" Than Facebook

Tyler Durden's picture
Submitted by Tyler Durden on 11/15/2013 10:57 -0400



 

Twitter's stock price is not happy. The unleashing of Twitter options this morning appears to have created a need to sell the underlying (after yesterday's exuberant pre-options jump). Over 1 million lots (100 million shares) have changed hands already in Twitter across all maturites but perhaps most notable is the demand. At-the-money implied volatility (an apples-to-apples way of comparing options 'costs') is around 50% for a December maturity which compares to 40% for Facebook options of the same maturity. It seems more than a few of the IPO owners are looking to hedge (as puts are notably more "expensive" than calls).

 

  • FB Dec Calls 39.75%, Puts 39.92%
  • TWTR Dec Calls 49.02%, Puts 50.76%

 

 
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Fri, 11/15/2013 - 11:00 | 4157601 Hedgetard55
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Surrender to the spice, fellow ZHers. Just surrender to the POMO. I did, and I feel GREAT!

Fri, 11/15/2013 - 11:25 | 4157707 Bearwagon
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Never! We will not capitulate, we will not let them terrorize us, we will not obey - and one day we shall be free!

Fri, 11/15/2013 - 11:06 | 4157617 Dr. Engali
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I just tweeted your twitter update.

Fri, 11/15/2013 - 11:06 | 4157623 williambanzai7
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#ThisTimeIsDifferent

Fri, 11/15/2013 - 11:23 | 4157695 runforthehills
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brilliant picture :)

I absolutely love this smiling face of Blankfein, which you've used repeatedly (always to great effect!)

Fri, 11/15/2013 - 13:48 | 4158271 Blues Traveler
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Sir William, your art and comments on #askJPM were outstanding. I was in a airport, howling out loud as people stared and quickly moved away.

It was a very proud moment as a long time ZHer.

Fri, 11/15/2013 - 14:19 | 4158399 U4 eee aaa
U4 eee aaa's picture

Captures the madness perfectly

Fri, 11/15/2013 - 11:07 | 4157629 orangegeek
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twitter rhymes with shitter

Fri, 11/15/2013 - 14:20 | 4158402 U4 eee aaa
U4 eee aaa's picture

and bitter

Fri, 11/15/2013 - 11:09 | 4157635 Bearwagon
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<-- this wagon will be leaving soon. All aboard!  ;-)

Fri, 11/15/2013 - 11:09 | 4157637 Flakmeister
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I figure that a good pairs trade is go short Tesla and Twitter....

Fri, 11/15/2013 - 11:21 | 4157690 Protokletos
Protokletos's picture

BREAKING: Twitter changes text font to Comic Sans, price breaks $60.  

Fri, 11/15/2013 - 11:56 | 4157817 max2205
max2205's picture

Typical low vol options pricing so far and not liquid so far

Fri, 11/15/2013 - 12:04 | 4157849 highwaytoserfdom
highwaytoserfdom's picture

 Is this option pricing model  the "new Normal"  or just the new "Zuckerburged"?

http://zuckerblood.files.wordpress.com/2011/06/005.jpg

Fri, 11/15/2013 - 12:06 | 4157864 Drachma
Drachma's picture

<== Twiddle twangle a twat?

<== Twitter a tweet?

Or perhaps the twain be entwined for the twittier kind?

Fri, 11/15/2013 - 12:43 | 4158018 PT
PT's picture

Apologies for repeating myself:  Twatter = adult version of Twitter.

Twatter merges with FaceBook, MySpace, Flickr and YouTube to become ...

MyFaceFlickrYouTwat 

Fri, 11/15/2013 - 13:32 | 4158204 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Or youtube, twitter and facebook merge to become youtwitface.

Do NOT follow this link or you will be banned from the site!