this post was submitted on 18 Jan 2024
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[–] NotMyOldRedditName 2 points 10 months ago* (last edited 10 months ago)

Not financial advice, but there's been a few times I wanted to short something (I didn't in the end) but one thing to watch out for after an IPO is the date insiders are allowed to start selling stock. It's often 6 months or so after the IPO and can cause share price to drop.

So if a company jumps in value post IPO, there might be an opportunity to short it at some point, with the options expiring a period of time after the insider sell off date.

I imagine I'm going to do some paper trades on reddit on this and see what happens. I'm rooting for them to do poorly. Fuck u/Spez

Edit: And to clarify, I mean buy puts on something. I'd never short something directly.