[Guyinbp]

yes, you are correct. in ye olden days, you had to wait. I don't remember when it changed.

I think everyone and their gambling granny (who didn't buy the IPO) is waiting to buy puts on Friday. Don't be suprised if Lyft soars next week.

It'll hit the dumpster. eventually. I wish I knew when. ha.

Why would Lyft soar next week if people are buying puts?

 

[EddieG]

I don't know how much buying power you have but not all trading accounts can short sale. You see only the good part of it but the bad part of it is unlimited. There are ways to get protected but the trading sites still don't alow doing short sale of a stock unless you get aproved for that. The big boys are doing short sale, not for everyone.

I've sold short in the past with the same account. Looks like I have to wait about a week.

 

[leroy jenkins]

Why would Lyft soar next week if people are buying puts?

everyone rushing to sell on the same day/week. If no one is left to sell (in the short-trem), and dip buyers rush in, stock goes up.

Or it could keep going straight down. no one knows. Everyone is buying/selling stock at $70 for company that makes negative $$$$ for each share.

That's why it's called risk.

 

[bpm45]

Why would Lyft soar next week if people are buying puts?

Because a market maker may sell you the put, but buy the stock and sell the call in response, providing upward pressure on the stock, reducing the likelihood you make money but he does.

 

[Guyinbp]

Because a market maker may sell you the put, but buy the stock and sell the call in response, providing upward pressure on the stock, reducing the likelihood you make money but he does.

That's not accurate, a market makes markets so they provide liquidity to buy and sell and make money via the spread. So they would not cause the stock to soar, that is not what they do.

Further, derivatives don't cause a stock to move. By definition they can't move a market, they derive their price from the underlying (I.e. stock) and not vice versa. The only way the stock can move is if there are more bids than offers. It would take a lot of capital for someone to move a $25 b stock upwards. Yes at expiration there can be slight movements but when I think of soar I think 10% or more. Or even 5%.

In your example owning 100 shares does nothing. Selling a call, buying a put, buying a call, selling a call none of that moves the underlying market,

 

[leroy jenkins]

FFS, don't read UberPeople for explainers on derivatives pricing.

https://en.wikipedia.org/wiki/Greeks_(finance)

https://duckduckgo.com/html?q=hull options filetype:pdf

https://shamit8.files.wordpress.com/2014/11/options-futures-and-other-derivatives-8th-john.pdf

https://www.quora.com/What-is-George-Soros-Theory-of-Reflexivity

 

[Nu1]

For now is going down, I don’t see why would go up. If, lets say 500 people ( lyft employees) got 10,000 shares each ( on average) then you have 5 mil shares ready to be sold. Some private investors might want to cash out too if there are no restrictions on thier stocks. For few weeks I don’t see lyft going above 72$ level, I see it more toward 50$. When the stock encounter resistance at one certain level then it might be a good time to buy. The stock market might be at a peak of a bull market and this is not in lyft’s favor, so watch out for that too.
If you invest in lyft be ready to wait or even worst, to lose some money. In my opinion, both lyft and uber would be a good investment......this business revolutionize public transportation ( the rest is talking and assuming).

 

[Guyinbp]

For now is going down, I don't see why would go up. If, lets say 500 people ( lyft employees) got 10,000 shares each ( on average) then you have 5 mil shares ready to be sold. Some private investors might want to cash out too if there are no restrictions on thier stocks. For few weeks I don't see lyft going above 72$ level, I see it more toward 50$. When the stock encounter resistance at one certain level then it might be a good time to buy. The stock market might be at a peak of a bull market and this is not in lyft's favor, so watch out for that too.
If you invest in lyft be ready to wait or even worst, to lose some money. In my opinion, both lyft and uber would be a good investment......this business revolutionize public transportation ( the rest is talking and assuming).

Yeah like Atari who revolutionized video games, and Kodak revolutionized photography, and xerox revolutionized copying, how are they doing?oh yeah, AOL was a revolutionary also, the big difference between these companies and Uber and lyft is they actually made money. Yet still ultimately failed or shrunk. Uber and lyft do not have sustainable business models.

 

[New guy65]

If they laid out a plan to become profitable people might buy into it as an investment. But when they came out and said they probably would not be profitable until self driving cars were available in 10 to 15 years interest probably dropped significantly. It means people can be patient to buy.

 

[Nu1]

Yeah like Atari who revolutionized video games, and Kodak revolutionized photography, and xerox revolutionized copying, how are they doing?oh yeah, AOL was a revolutionary also, the big difference between these companies and Uber and lyft is they actually made money. Yet still ultimately failed or shrunk. Uber and lyft do not have sustainable business models.

If you expect lyft to be next amazon or coca cola then you are right. I only expect to double my money when I jump in and done.

 

[leroy jenkins]

In the top of the 2nd inning, option buyers love Lyft. Might gamble $2000 on 2021 puts tomorrow. PS, don't be an idiot and take money advice from the internet.

 

[UberBeemer]

Interesting though, that it is back to 72 at today's close.

 

[Nu1]

Guys get ready to buy some lyft, Going down quickly..... did anyone bought puts? leroy jenkins did you got the 2021 puts?

I'd buy calls for 2021 instead of puts but everyone has its own strategy.

 

[bpm45]

That's not accurate, a market makes markets so they provide liquidity to buy and sell and make money via the spread. So they would not cause the stock to soar, that is not what they do.

Further, derivatives don't cause a stock to move. By definition they can't move a market, they derive their price from the underlying (I.e. stock) and not vice versa. The only way the stock can move is if there are more bids than offers. It would take a lot of capital for someone to move a $25 b stock upwards. Yes at expiration there can be slight movements but when I think of soar I think 10% or more. Or even 5%.

In your example owning 100 shares does nothing. Selling a call, buying a put, buying a call, selling a call none of that moves the underlying market,

The volume and open positions of derivatives provide a signal to traders of the underlying and can cause movement of the stock.

 

[SatMan]

Lyft Inc. -- Up 0.9% premarket: The ride-hailing company said it will release quarterly results on May 7. Shares tumbled 11% Wednesday, their second drop of at least 10% since the company went public late last month, after The Wall Street Journal reported that Lyft competitor Uber is aiming for a valuation in its impending initial public offering below previous expectations.

UBER is down for the count....10...9...8)

Uber expected to register IPO on April 11, anticipates $100B in valuation
10:45 am ET April 11, 2019 (Benzinga) Print

Pushing aside concerns about the stickiness of the ride-sharing business model and a steady decline in Lyft's (NASDAQ: LYFT) share price, Uber is expected to make the registration of its initial public offering (IPO) publicly available tomorrow, April 11, signaling the beginning of one of the biggest tech market debuts in history.

According to a Reuters report, the ride-sharing company will seek to sell roughly $10 billion in stock. Reuters also confirmed the expected timing of the IPO registration.

If successful, Uber would attain a valuation of between $90 billion and $100 billion, making it the largest tech IPO since Chinese e-commerce business Alibaba in 2014.

Uber's pending IPO comes as many experts are questioning the profitability of the ride-share model.

Lyft's stock debuted last month at $72 per share before immediately dropping below that target. It is currently trading at $67.56. In an April 9 interview on CNBC's Fast Money, New York University professor Aswath Damodaran said Lyft should be trading closer to $59 per share with a valuation of $15 billion. That would wipe nearly $3 billion off its $17.7 billion valuation as of today and cut its share price by about $3, as CNBC reported.

"The driver is a free agent. The customer is a free agent. There is absolutely no stickiness in the business, and they know it. That's the basic problem I have with the ride-sharing business [model] - not just Lyft," Damodaran said.

Uber CEO Dara Khosrowshahi is expected to address profitability concerns during his company's IPO roadshow, to take place in late April. That would put the company on track to price the IPO and begin trading on the New York Stock Exchange in early May, Reuters reported.

This story will be updated.

Image sourced from Pixabay

 

[EddieG]

In the top of the 2nd inning, option buyers love Lyft. Might gamble $2000 on 2021 puts tomorrow. PS, don't be an idiot and take money advice from the internet.

What platform do you use to trade? Doesn't like like think or swim from TD. Webull perhaps?