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Another option for Facebook trading

By Chad Terhune
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Investors who missed out on Facebook’s initial shares have another option, literally.

The Chicago Board Options Exchange will start listing option contracts on the social-media giant May 29, according to specialist firm Susquehanna Investment Group. The company’s options are expected to be among the most heavily traded and volatile in the market.

This approach allows investors who missed out on the initial trading to pick and choose prices in the options market.

An option that gives the investor the right to buy the stock at a specific price is termed a call. In contrast, the option to sell the stock at a specific price is called a put.

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There are risks involved in options trading. Most online brokerages handle options trading and they can offer retail investors tips on how to navigate a complex market. There’s more information at the options exchange’s website.

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Chad Terhune

Chad Terhune previously covered the business of healthcare, including medical costs, patient safety and the rollout of the federal health law. Prior to joining in 2012, he was an award-winning reporter for the Wall Street Journal and Businessweek. Chad spent more than a decade at the Journal and his stories on health insurance won a National Press Club award. At Businessweek, his stories on health reform and subprime mortgages earned recognition from the New York Press Club and Investigative Reporters and Editors. He graduated from the University of Florida. Terhune left The Times in January 2016.

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