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The IPO Trap: Big Pop, Then a Long Slide

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Breakdown

0:00SOXX· ticker

SOXX down, semis decimated

  • Equities down all day
  • EMIs and NASDAQ down significantly
  • Bitcoin rallies into sell-off
  • Oil up at 103-104
  • Gold and silver down all day
2:15SpaceX· ticker

SpaceX IPO — price back to IPO level

  • SpaceX IPOed at 150
  • Jumped to 225
  • Hammered down to 110
  • Now back to 150
  • CBRS IPOed at 100
  • Ripped to 400
  • Sold off to lows
4:11SOXX· ticker

SOXX options — 33% touch probability

  • 400 strike option to downside
  • 33% touch probability
  • 100 points to downside
  • Call skew expected
  • Premium priced to upside
6:12SMH· ticker

SMH down 5%, call skew to upside

  • SMH down 5%
  • 450 strike to downside
  • 17% in money probability
  • 650 strike to upside
  • Call skew less than SOXX

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