4 ms·
there's no way to bet against freshly issued IPOs, right? I think for both shorting puts, there's a lockout period after the stock is issued. And limited inv
by fnord77 5y ago
there's no way to bet against freshly issued IPOs, right?
I think for both shorting puts, there's a lockout period after the stock is issued. And limited inventory for borrowing.
Or has that changed?
I see almost all recent high-flying IPOs as overly inflated investor cashouts. Steve Blank had a post about this...
- poooogles 5y ago>there's no way to bet against freshly issued IPOs, right? Sell call options? Buy puts?
- deleted 5y ago[deleted]
- np_tedious 5y agoThis is generally unavailable until 1 day after IPO.
- enlyth 5y agoOptions are not available from day one on IPOs, usually it takes at least a few weeks for them to get listed, although the minimum delay is three days
- quickthrowman 5y agoYou could do an OTC swap with Goldman Sachs, or just wait a week for the market makers to open up the option chains. Once the chain is open, you can sell as many puts as your heart desires (or as many as your broker will let you) FYI, shorting puts is long delta, so you’d want the price to go up if you sold puts. Long puts and short calls are negative delta (short)
- fnord77 5y agosorry I meant "shorting or puts (buying)"