Key insights
- The user is exploring a day-trading strategy for the potential SpaceX IPO, questioning concerns about "retail exit liquidity" and lock-up periods. While acknowledging the hype, they believe a quick flip strategy mitigates these risks. The post highlights retail investor sentiment and potential market dynamics around high-profile IPOs, but does not present a clear leading indicator for broader US equity market movements.
Hi good people of reddit, first time IPO participant here considering a day flip strategy on the SpaceX IPO. I have decided to dip my toes in IPO therefore here are some questions for those with more experience.
Given how much hype surrounding SpaceX right now, whats the real downside of flipping shares on IPO day for a quick profit?? I’m aware of the “retail exit liquidity” concern making the rounds, but doesn’t that argument largely apply to long term holders? If i’m in and out the same day, the shortened lock up period seems irrelevant to my strategy. I know this is not a guaranteed win, case in point the recent Cerebras IPO. If I stick to my strategy and not be greedy I find it difficult the grasp the idea why one would not participate in this IPO.
I also feel like the exit strategy liquidity narrative gets recycled for every hot IPO, what makes SpaceX different in that regard?? Sounds to me fear mongering.
Happy to be corrected if I’m missing something. Appreciate yall!!
Edit: I am using IBKR