No. of Recommendations: 18
I get the impression that this SpaceX IPO phenomenon is regarded as a major inflation. My question is: How might one best take advantage of the seemingly certain deflation likely to come? I haven't done complicated stuff like options and shorts, but if it may be possible to get a big boost in a short period of time on this one, I might be willing to put in a small percentage of my port into the gamble. Any thoughts?
Really, options are the best. If you buy a put, you might lose the money you put into it, but you can't lose any more than that.
An update from up thread:
The stock price is about $204 at the moment.
The price of a January 2028 (longest dated) $205 put is around $65.
The stock price is now $199.20, and that put is now trading around $73-74, up about 13%.
Easy!
Of course, the market value might go down if the market cap goes up more, but it won't go down below the $65 you paid.
Correction: options might not be the best choice. The best choice is probably to sit on the sidelines and just watch it like an entertaining movie.
There sure does seem to be some exuberance out there. A shoe company (Allbirds) announces it's going to become an AI company, and the stock price zooms. It's up 45% today. Like the 1990s when you could make a bundle just by adding ".com" to your company name.
Jim
