Trading Facebook and the Pervasive Need for Speed

Goose: [as Maverick is looking around the room] What are you doing?
Maverick: Just wondering who’s the best.
Viper: In case some of you are wondering who the best is, they’re up here on this plaque on the wall … [turns to Maverick]
Viper: You think your name’s gonna be on that plaque?
Maverick: Yes, sir.
Viper: That’s pretty arrogant, considering the company you’re in.
Maverick: [pauses] Yes, sir.
Viper: [smiles] I like that in a pilot. Just remember, when it’s over out there, we’re all on the same team.

Later …

Maverick:

I feel the need…

Maverick, Goose:

…the need for speed!

SPEED!!!

– We’ll come back to speed, but first we have to talk about Facebook.

Thursday, March 17th 2012

I was buzzing about the impending Facebook initial public offering (IPO) during Thursday Night’s Fight Club. More specifically, my plan to trade in-and-out quickly and make a veritable bundle.

First, I would try to get in on the IPO. If I didn’t receive any share allocation, which I suspected would be the case, I would dive into the secondary trading market, assuming the market’s froth would drive the price skyrocketing upward … then I would stick to may plan and sell out (at a $90 strike price) – in at ~$60 and out at $90, pocketing a nice $30 per share (not bad for an hours work).

That was the plan, anyway.

Beast's Facebook Trading Strategy

Beast's Facebook Trading Strategy

Notice on Fidelity.com:

Facebook (symbol FB) has priced at $38 per share and is expected to begin trading in the secondary market on Friday, May 18, 2012. Limit orders will be accepted at approximately 7:00 am ET and Market orders will be accepted when Facebook (FB) begins trading at approximately 11:00 am ET, as announced by NASDAQ.

Friday, March 18th 2012

9:30am

– Drove over to Beast to drop-in on a Bootcamp Class and settle-up with one of our trainers

9:45am

– Drove to Frenchtown Elementary School to attend my 2nd grader’s Career Day

10:30am

– Drove back home to prepare to become a Facebook Billionaire

10:45am

– Sat down in front of CNBC and listened to the frenzy; my laptop opened and logged into Bloomberg and Fidelity.com; I was drinking my third cup of coffee for the day

10:50am

– Entered a Limit Order for X shares of FB

11:00am

– Intently watched the FB Indicative IPO Cross on CNBC, a graphic updated every 14 seconds, which demonstrates and indication of where the stock will begin to trade on the secondary market

11:15am

– NASDAQ is having trouble handling the volume of FB orders and delays trading; meanwhile the IPO cross demonstrates the price is weakening; I get nervous and attempt to “Cancel and Replace” my Limit Order

11:30am

– Fidelity still shows my trade as “Pending Cancel,” because I can’t be sure the trade was canceled (i.e. not filled) I can’t responsibly put in another order

Notice on Fidelity.com:

FB order execution slowness
Certain marketplaces are experiencing slowness resulting in delays in execution for Facebook orders. Industry technology teams outside of Fidelity are working to correct the problem. This slowness is being experienced by other online brokers as well, not just Fidelity. This has been reported as a market-wide issue. We do not yet know when the problem will be resolved. We appreciate your patience.

2:30pm

– still “Pending Cancel” – I put a call into Fidelity, but it’s no use … too many problems … too much volume … NOT ENOUGH SPEED

4:00pm

– FB closes at a share price of $38.23 +0.23 (0.61%) on the day

5:00pm

– I head over to Beast to help run an Athletic Training Session with a concentration on speed … still unsure whether or not my order has been filled or canceled

Erik Eggers and Mark Zuckerberg

Erik Eggers and Mark Zuckerberg



All athletes benefit from speed. Football players are certainly no exception. Games can be won or lost based, at least in part, on the speed of the athletes. While strength is a contributing factor in overall speed, an athlete cannot achieve great speed, by training solely for strength; the quick-twitch muscle fibers must also be trained.

Beast Programming for “Facebook Friday:”

Full Dynamic Warmup

Agility Ladder

Prowler Marches
4 Sets of 20 Yard marches – I learned these from Joe DeFranco; helps put the athlete in proper sprint position (i.e. proper acceleration lean) and teaches appropriate knee drive (bringing the knee in a straight line to the chest area)

Box Jumps
5 Repetitions for all Sets:

2 Sets of Bodyweight Jumps
2 Sets of Banded Jumps (jumps against band tension)
1 Set of Bodyweight Jumps
2 Sets of Jumps holding light DBs

Prowler Sprint into Full Sprint
6 Sets (See Video Below)

Trap Bar Deadlift
3 x 3

Here is the BEAST Training Video of the Prowler Sprints into a Full Sprint:

8:00pm

– discover my order was, in fact, filled at $40SHIT … down on the first day of trading FB – at least the speed workout at Beast went tremendously well

Here is the Joe DeFranco video showing Prowler Marches and other acceleration techniques:

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