I dont want to piss on what rockhard said but almost all of it pertaining to options is false.
First off as a retail guy not much you can do other than wait for the IPO and short the stock. Depending on the liquidity that will determine the interest rate you have to pay on the stock. Basically if I buy the shares I can choose to have my brokerage lend you my shares at my determined rate. Remember though shorting the stock can only yield you a return of 100% maximum. The loss could be in theory though infinite.
The option part is wrong for a couple reason. First one being a covered call strategy is the exact opposite of what you are trying to do. That requires you actually buying the stock and it staying flat or it staying under the strike price of the call option for maximum gain. If the stock trades above the call strike price at expiration the stock will be taken away from you at that strike price. You would need a 100 shares for every call option SOLD
But you can't even use that strategy since options will not be available for at least 5-10 days after a company has gone public. Not all publicly traded companies even have options. Options are available to highly liquid stocks. Most publicly traded companies or financial instruments do not have options
First off as a retail guy not much you can do other than wait for the IPO and short the stock. Depending on the liquidity that will determine the interest rate you have to pay on the stock. Basically if I buy the shares I can choose to have my brokerage lend you my shares at my determined rate. Remember though shorting the stock can only yield you a return of 100% maximum. The loss could be in theory though infinite.
The option part is wrong for a couple reason. First one being a covered call strategy is the exact opposite of what you are trying to do. That requires you actually buying the stock and it staying flat or it staying under the strike price of the call option for maximum gain. If the stock trades above the call strike price at expiration the stock will be taken away from you at that strike price. You would need a 100 shares for every call option SOLD
But you can't even use that strategy since options will not be available for at least 5-10 days after a company has gone public. Not all publicly traded companies even have options. Options are available to highly liquid stocks. Most publicly traded companies or financial instruments do not have options
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