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>I am also confident xAI is not one of those Surely you're going to buy long Put options with that confidence, right?
by lacy_tinpot 7mo ago
>I am also confident xAI is not one of those
Surely you're going to buy long Put options with that confidence, right?
- ZitchDog 7mo agoYou can’t trade options on an IPO.
- groby_b 7mo agoYou 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 7mo agoA Musk joint immediately after an IPO. ATM puts will be trading at what, 250% IV?
- groby_b 7mo agoProbably. 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.
- compass_copium 7mo agoThe market can stay irrational...
- lacy_tinpot 7mo agoSure. It's the market that's irrational, not the people here. The people here are the truly enlightened rational ones and know what the true value of things are.