12 ms·

You can’t trade options on an IPO.

• groby_b 6mo ago
  You can post-IPO - depending on liquidity. I don't think that'll be an issue here. And if the thesis of "it's going to look good for the first 15 days" holds, you can indeed be very profitable by e.g. buying ATM puts. (The problem being that markets don't like sticking to time tables just to accommodate your investment thesis ;) So yes, you'll be able to take a bearish position fairly shortly after the IPO.
  • compass_copium 6mo ago
    A Musk joint immediately after an IPO. ATM puts will be trading at what, 250% IV?
    • groby_b 6mo ago
      Probably. Hey, you picked a risky thesis heading into large uncertainty, that's not free. But for the folks who are dead convinced it's all just a scam and it will quickly collapse, that's a way to put their money where their mouth is.