my hedged trade on Facebook
Updated
Hi everyone,
This is another trade taken today: Long Facebook vs Short JC DECAUX.
Facebook has lost about 20% from its august top.
Fundamentals are still strong (ROE, revenues, margin, cash flow), the management is strong as well.
I choose to hedge it with JC DECAUX, traditional advertising industry, with weakening fundamentals (debt and cash flow are bad), Moody's outlook is negative, and the management is not that good (actually they are the heirs of the founder, compare with Facebook that is run by its founder...).
This is implemented with barrier options maturing in 90 days.
Comments are welcome!
This is another trade taken today: Long Facebook vs Short JC DECAUX.
Facebook has lost about 20% from its august top.
Fundamentals are still strong (ROE, revenues, margin, cash flow), the management is strong as well.
I choose to hedge it with JC DECAUX, traditional advertising industry, with weakening fundamentals (debt and cash flow are bad), Moody's outlook is negative, and the management is not that good (actually they are the heirs of the founder, compare with Facebook that is run by its founder...).
This is implemented with barrier options maturing in 90 days.
Comments are welcome!
Note
JCdecaux +30%... out of the trade
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