Like clockwork ahead of FB’s 7/23 expected earnings report, we are starting to see some options activity in the name.
Yesterday the July 70 calls traded in good size, and it is worth noting that FB has significantly out-performed Techs in general as well as the broad market S&P 500 YTD (the stock is up over 23% versus S&P and Nasdaq 100 up >5%).
After flirting with the $55 level on several occasions throughout April and May, the stock has largely been off to the races recently, and in striking distance of its all-time intraday high of $72.59 that was reached in March.
FB is not only a stock that clearly has “net” fared well since its debut as an IPO after a sluggish start, but it is about a 3% weighting in the QQQ (PowerShares QQQ, Expense Ratio 0.20%) at the moment, making it the ninth largest member of the Nasdaq 100, showing that it has some market cap heft in terms of the greater “Tech” sector.
The question remains if long holders of the stock fold their hands “into” the next corporate earnings report or will they stick around for uncertain news.
As always, SOCL (GlobalX Social Media, Expense Ratio 0.65%) remains in focus on every significant move in FB stock, as the ETF has a >11% weighting to the name and at times the stock will be the #1 holding in the ETF (alternating with China based Tencent Holdings Ltd.).
Being a recent IPO, two IPO focused ETFs that have nice slugs in FB stock have fared well in terms of performance lately as well, these funds being FPX (First Trust IPOX-100 Index, Expense Ratio 0.60%) and IPO (Renaissance IPO ETF, Expense Ratio 0.60%) with >9% and >8% weightings to the stock respectively.
FPX has attracted an impressive $480 million since inception while IPO remains considerably smaller with about $29 million.
On this note, there appears to be a continued appetite on Wall Street for a steady stream of IPOs, as the IPO market is abuzz again this morning with the debut of both GPRO and SERV.
Other ETFs that have considerable weightings to FB that may not be on the tip of everyone’s tongues are PNQI (PowerShares Nasdaq Internet Portfolio, Expense Ratio 0.60%), with a >8% weighting, as well as FDN (First Trust DJ Internet, Expense Ratio 0.57%), WMW (ELEMENTS Morningstar Wide Moat Focus ETN, Expense Ratio 0.75%), and MTUM (iShares MSCI USA Momentum Fund, Expense Ratio 0.15%).
First Trust US IPO Index Fund
For more information on Street One ETF research and ETF trade execution/liquidity services, contact Paul Weisbruch at pweisbruch@streetonefinancial.com.
Street One Financial is an educational/research firm utilizing the Broker Dealer services of Precision Securities, a FINRA registered Broker/Dealer.