How to hedge startup equity?

Lime / Eng
Jim bean

Go to company page Lime Eng

Jim bean
Jan 3, 2021 3 Comments

So suppose lime goes public in the next year or two. I would expect my current options to be worth a decent amount given current bubble. However if the market crashes before ipo, im out of luck. Any ideas how to hedge? I can't sell shares via secondary market. I thought about buying puts on uber, lyft, qqq etc but wondering if there's better financial instruments out there / anyone have better ideas and are in similar situations?#personalfinance #investments

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TOP 3 Comments
  • Uber
    leaf-sheep

    Go to company page Uber

    leaf-sheep
    Buying puts on us would be embarrassing for you
    Jan 3, 2021 0
  • Amazon
    YOLO man

    Go to company page Amazon

    YOLO man
    Puts on DoorDash. Will be very correlated I think if there is a bubble pop. Might go down anyway...
    Jan 3, 2021 0
  • You could short sell a competitor as you had mentioned above (versus a put, in order to not have an expiration date attached to it); however given it’s a private co (and public companies will often restrict you from short selling that company anyway) that is likely your only option.
    Jan 3, 2021 0