Will lock-up send the price crashing.. whats driving the run-up? Some fam got in on the direct listing.. i dont want them to ride it back down to the buying price but dont want to sell out early either.. what types of option plays could be used for this situation?
Long puts or covered calls? even if it would have been better before this correction for covered calls. I also own some but I am not much concerned about today, considering the rally it's coming from. Lockdowns shouldn't affect it much unless it brings all markets down.
1-Sell stock position to lock profit. 2-Buy OTM call and sell OTM put to pay for call. If stock rises you're long the call. If stock drops you'll be getting long at a lower price if put goes ITM and exercised. ***Haven't looked at the options pricing to see if it would work now.
Citron also said that Nio would crash, and that was 20$ (60%) ago more or less. I don't know them so well to judge them anyway. I am protecting both with puts as I got good entries. Palantir is quite a thing... With limited risk, I would love to hold a tiny fraction of the pie for long term.
Another choice to reduce risk. Quick check of prices. Close long stock position. Buy Dec. 18 Call spread 25/35 for 3. Max loss = $300 for profit potential of $700 if price to 35. Call spread long would be intrinsic value so no premium decay. Stock near 28.
I actually meant a collar when I wrote covered call. Selling calls otm to recover put cost while holding the stock.
There's no lock-up on a direct listing, its different from a standard underwritten IPO. Here, from their filing: The Registered Stockholders may sell their shares of Class A common stock covered hereby pursuant to brokerage transactions on the NYSE, or other public exchanges or registered alternative trading venues, at prevailing trading prices at any time after the shares of Class A common stock are listed for trading. We are not party to any arrangement with any Registered Stockholder or any broker-dealer with respect to sales of shares of Class A common stock by the Registered Stockholders, except we have engaged financial advisors with respect to certain other matters relating to our listing, as further described below. As such, we will have no input if and when any Registered Stockholder may, or may not, elect to sell their shares of Class A common stock or the prices at which any such sales may occur, and there can be no assurance that any Registered Stockholders will sell any or all of the shares of Class A common stock covered by this prospectus.
But........ Our executive officers, directors, and record holders representing over 99% of our capital stock and securities convertible into or exchangeable for our capital stock are subject to market standoff or lock-up agreements with us under which they cannot sell, offer, contract to sell, pledge, grant any option to purchase, lend, or otherwise dispose of shares of our capital stock, or enter into any hedging or similar transaction or arrangement that is designed to or could reasonably be expected to lead to or result in a sale or disposition or transfer of any of the economic consequences of ownership of shares of our capital stock, until the start of the third trading day following the date of public disclosure of our financial results for the year ending December 31, 2020 (the “lock-up period”), except as described below and subject to certain other exceptions. Starting on the first day of trading, the restrictions contained in the lock-up agreements will no longer apply to (i) an aggregate of 383,609,647 shares of common stock, including shares issuable upon exercise of outstanding stock options, and (ii) an aggregate of 68,149,214 shares of common stock issuable upon vesting of restricted stock units. The remaining 1,863,150,291 shares, including shares issuable upon exercise of outstanding stock options, will be able to be sold after the lock-up period, subject to applicable securities laws and our insider trading policy. In addition, certain record holders subject to market standoff agreements with us have not signed the lock-up agreement and are therefore not permitted to sell any shares during the lock-up period. If such record holders sign the lock-up agreement, up to an additional 37,369,371 shares of common stock, including shares issuable upon exercise of outstanding stock options, would be able to be sold during the lock-up period. 89,007,617 shares held by our Founders and their affiliates will be permitted to be sold immediately under the Founders’ lock-up agreements and will be registered for resale pursuant to the registration statement of which 71 Table of Contents this prospectus forms a part. Accordingly, these shares will be available for resale by our Founders starting on the first day of trading, and we reasonably expect that our Founders and their affiliates may sell all or a significant portion of such registered shares. Following the expiration of their lock-up agreements, our Founders will be free to sell all of their remaining shares pursuant to Rule 144 (subject to volume limitations) at such times and in such amounts as they determine. Our lock-up agreements are with record holders of our securities. Holders of beneficial interests of our securities that are not record holders and that are not otherwise bound by lock-up agreements could enter into transactions with respect to those beneficial interests that negatively impact our stock price. In addition, an equityholder who is not subject to a lock-up agreement with us may be able to sell, short sell, transfer, hedge, pledge, or otherwise dispose of or attempt to sell, short sell, transfer, hedge, pledge, or otherwise dispose of, their equity interests at any time after our listing on the NYSE. As of June 30, 2020, giving effect to the Capital Stock Conversion and the exchange of 1,005,000 shares of our Class B common stock for 1,005,000 shares of our Class F common stock, there were 441,008,749 shares of our Class A common stock outstanding, 1,089,984,003 shares of our Class B common stock outstanding and 1,005,000 shares of our Class F common stock outstanding, all of which are “restricted securities” (as defined in Rule 144 under the Securities Act). This excludes 55,521,520 shares of Class A common stock related to the RSUs for which the service-based vesting condition was satisfied as of June 30, 2020 and which will vest in conjunction with our listing on the NYSE. Subject to the terms of the Lock-up Agreement and excluding all shares of our Class F common stock, substantially all of these shares may be immediately sold either by the Registered Stockholders pursuant to this prospectus or by our other existing stockholders under Rule 144 since such shares held by such other stockholders will have been beneficially owned by non-affiliates for at least one year. Moreover, once we have been a reporting company subject to the reporting requirements of Section 13 or Section 15(d) of the Exchange Act for 90 days, and assuming the availability of certain public information about us, (i) non-affiliates who have beneficially owned our Class A common stock for at least six months may rely on Rule 144 to sell their shares of Class A common stock, and (ii) our directors, executive officers, and other affiliates (including our Founders and their affiliates) who have beneficially owned our Class A common stock for at least six months, including certain of the shares of Class A common stock covered by this prospectus to the extent not sold hereunder, will be entitled to sell their shares our Class A common stock subject to volume limitations under Rule 144 under the Securities Act. Further, as of June 30, 2020, there were outstanding options to purchase an aggregate of 308,905,744 shares of our Class A common stock and 150,232,792 shares of our Class B common stock, 178,685,408 shares of our Class A common stock subject to RSUs and 3,582,674 shares of our Class A common stock subject to growth units. All shares of our common stock issuable upon the exercise of outstanding stock options and reserved for future issuance under our equity compensation plans will be registered for public resale under the Securities Act. Upon effectiveness of the registration statement, subject to the satisfaction of applicable exercise periods and compliance by affiliates with Rule 144, the shares issued upon exercise of outstanding stock options or upon settlement of outstanding RSUs and growth units will be available for immediate resale in the United States in the open market. The liquidity event-based vesting condition on our RSUs will be satisfied in connection with the listing and public trading of our Class A common stock on the NYSE and will result in the vesting and settlement of approximately 55,521,520 RSUs held by our current and former employees and other service providers as of June 30, 2020. A potential oversupply of shares due to sales by holders of RSUs and growth units could also adversely impact the trading price of our Class A common stock. Following the effectiveness of the registration statement of which this prospectus forms a part, we expect that stockholders owning an aggregate of up to 656,018,583 shares of our common stock will be entitled, under the provisions of our Amended and Restated Investors’ Rights Agreement dated August 24, 2020 (“IRA”), described further in the section titled “Description of Capital Stock —Registration Rights,” to require us to register shares
Ya know... I knew this was a great stock. Did I buy any? Nooo. I thought it would dip out of the gate more than it did. Oh well. From April before the initial ipo or whatever you wanna call it: It didn't matter if it came out at $10, or $40..... wherever. Good stock. That said, if one is prudent, they'd hawk the SEC site... EDGAR.... and keep up with things. One thing's for 100000% sure..... This thing is not dropping too much from here. You can take that to the bank. Oh it might pull back 3 or 4 $'s.... whatever.... but this one's a granny stock. -vz