Will Facebook Users 'Like' Its IPO?

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK (Top Gun Options) -- Unless you happened to be shipwrecked on a deserted island without Internet access, you are probably aware that Facebook filed papers with the necessary regulators this past Wednesday, and will be going public sometime in the next several months.

To say that this IPO will be met with enthusiasm is probably a major understatement. It has been so widely anticipated for so long, that it is highly likely that investors will jump on the stock fast and furiously. Whether it is actually a smart investment is a different question, and one that naturally remains to be seen.

However, institutional investors probably will hold off, while retail investors will latch on, regardless of price, because they will have dreams of Google-like returns of 400% profits in two years.

Follow TheStreet on Twitter and become a fan on Facebook.

What may be of greater interest to many Top Gun Options traders is the answer to the question: When will options become available on Facebook stock? It is options, after all, that when used correctly can give both traders and investors the necessary leverage to take advantage of a particular situation. Usually, it takes a few months before option chains are introduced for IPOs, but with Facebook, don't be surprised if you see them within a month after the stock comes to market.

There is a good chance that the Facebook community will have a certain attachment to the stock that could make it a market darling, if nothing else than for sentimental reasons as opposed to for fundamental ones. For this reason, it may not be too early to start looking at some option strategies that can take advantage of a unique market situation.

How the VIX Fared

As of Thursday afternoon, the Chicago Board Options Exchange Market Volatility Index (VIX) stood at 18.35. Normally, it would be safe to say that a level of support at 18 is being established, but as we are talking about an index that tracks volatility, normal may not apply. However, as a quick glance at a 12-month chart clearly indicates, the VIX remains within about 20% above its lowest point back in April of 2011.