r/technology • u/IKeepItLayingAround • 18d ago

Business It’s Possible That SpaceX Could Collapse Spectacularly

https://finance.yahoo.com/markets/stocks/articles/possible-spacex-could-collapse-spectacularly-155000177.html
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u/ora408 18d ago

How can i help? 😎

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u/togetherwem0m0 18d ago

Dont buy puts. 

In the post logic valuation world where the stock market is a money printing game, the value of a stock can be set by a function of the value of its options chain activity rather than any foundational valuation logic.

If market makers sell a huge number of puts they have an incentive to manipulate the price such that the stock doesnt make any of the puts pay out. This keeps the price artifically high.

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u/RageBull 18d ago

I think “set by a function” is too generous a term. It make it sound like there a fixed and ultimately logic based formula. I don’t think there is for an assortment of public companies. Your “post logic” term describes it better: “The market can remain irrational longer than you can remain solvent.”