According to the report of Wall Street Journal, the lock-up period of Facebook (FB) stock will expire in the next few weeks, the tradable outstanding shares of Facebook in the second market will reach 19.9 million shares before the end of 2012, five times the current oustanding shares.
Market commentators believe that the lockup period expiration may lead to pressures on Facebook stock price in the next few months and Facebook stock price could fall further. This could create an attractive entry point.
Option traders believe that Facebook stock price will still continue to fall. As of the closing bell on Tuesday, Facebook stock price plunged 6.22%, or $1.44, to $21.71, down 42.87% versus its IPO price of $38.