r/stocks
How are you managing IPO risk?
Author predicts market correction from AI IPOs, holds cash, plans to sell puts on Anthropic or buy AMZN leaps on dip.
- Established tech giants like AMZN have resilient business models that support long-term value recovery after temporary dips.
- Selling deep OTM cash-secured puts allows for acquiring high-quality AI assets at a discount while generating premium income.
- Market overreaction to IPO supply shocks creates attractive entry points for fundamentally strong companies via LEAPS.
- Upcoming mega-IPOs (SpaceX, Anthropic, OpenAI) may trigger significant market corrections or crashes as institutional investors rebalance.
- Retail investors and 401K funds are viewed as potential exit liquidity for early insiders dumping shares post-IPO.
- High volatility and inflated premiums immediately following IPOs pose risks to option strategies if the downturn is prolonged.
SpaceX, Anthroipic and OpenAI are all going to IPO soon. Youtubers have already warned that "insects in wallstreet" are trying to find the scapegoats to dump this crap on. The target it 401K, and other funds. Hence the prediction that markets will at least correct, if not crash because of these events.
I have already raised some cash, for buying call leaps on some good names, if they crash. I have also rebalanced my 401K to 99% cash. I will wait till this IPO mania settles down. I will check if I can raise more cash.
After the IPO, I am mainly going to try and do one of two things.
- I will sell very deep OTM cash secured puts on Anthropic. If youtubers are right, it will go down and premiums will be high right after IPO so the cash secured puts will pay me for getting a great point of entry.
- Slingshot trades: Meta is such a dead stock right now. So was AMZN sometime back. So if any of these names crash as a domino effect of these IPOs crashing, then I will buy deep ITM call leaps (long expiry) hoping for a slingshot action in the price. Ideally, such robust businesses should not go below certain valuations so when they do, we basically grab'em.
How do you plan to play this out? Would love to hear your thoughts.
Rebalanching to 99% cash? LMAO. Good luck timing the FOMO back in
I just do nothing for the next 30 years and beat all of you anyways.
This all the way
Rebalance to cash? You mean you liquidated to buy this hype train?
Are you mad
Do nothing. This one will pass too. Not gonna retire anytime soon
Youtubers have already warned [...] I have also rebalanced my 401K to 99% cash
You fell for a bunch of BS hook line and sinker.
By not participating
Someday I wonder wtf I am doing on this subreddit
LOL.
Either you're a total sucker, or you're trying to low-key sell one of these "investing groups."
I'm guessing the latter.
Bro…
Goddammit, you´re following a recipe to disaster. Good luck there. You need it.
Fucking lol.
That's some of the most idiotic things I have ever read, and this is Reddit mind you.
you're not particularly bright are you
Well SpaceX got denied fast track into the S&P500 so you could have allocated to that instead of selling. I'm sure your 401k also has mod and small cap funds as well as international. Why not one or all of those? Mid caps are so underappreciated.