Two ways to spread bet the Facebook flotation

There are plenty of reasons not to buy into Facebook’s IPO as a shareholder. But there are some interesting opportunities for spread betters to make a quick bob or two, as Tim Bennett explains

Love it or loathe it, social networking site Facebook is hard to ignore. Especially now that it is planning its IPO. And while there are plenty of reasons not to board this particular float as a shareholder (for more on this see my colleague John Stepek's article Why I won't be buying shares in Facebook) there are some interesting opportunities for spread betters to make a quick bob or two.

Did you know for example that you can play the size of the share price move on day one? Many punters reckon Facebook will surge once its shares are up and trading. After all, business-networking site LinkedIn floated at $45 per share and then fizzed up to $95.25 a rise of 109%. Web-based discount coupon group, Groupon, closed up a more modest 31%. Meanwhile, games portal Zygna finished down 5%.

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Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.