If you are a passive investor you might want to read up on the goofy rules that are going to force massive purchases of SpaceX once it goes public for certain index funds. Great news if you own SpaceX now, not so great if you want to avoid anything Elon.
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1I spent some time today going into a rabbit hole of the SpaceX IPO. Thought it was a space company. Turns out it’s a small telecom company that's propping up a space company (not very well at that) and the entire thing is being dragged down by the crappiest of the AI companies.
I then spent even more time researching how one shorts an IPO…
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@paul how does one short an IPO?
@johnefrancis @paul There are variations which involve options and futures but I don’t think they are all legal or feasible for Joe Average. Some are riskier than others. For example one could sell call options at the issue price for pure profit if it drops but at the risk of technically unlimited risk if it rises. Short tactics always have that sort of risk, because there is no bound to human fantasy. Consult a broker for the proper advice. (I.e.”Don’t do that, you will lose your shirt. “)
@grumpybozo @johnefrancis @paul IPOs always have a bubble of a few weeks to a month or two where they ride high from the initial launch and then come down to a more sane price. If you can predict when it's gonna come down, short it