Reddit Is Letting Power Users In on Its IPO. Not Everyone’s Buying::Reddit says it wants to reward users by letting them buy into the company’s public listing. Some say it’s too risky—others say they won’t pay a company they’ve already given hours of free labor to.
But they said they’ll only do a small amount, so they’ll only risk losing a small infinite amount of money.
Options contracts for strategies like this typically cover 100 shares minimum though, so if Reddit’s stock goes public at say $10.00 per share and they buy 1 contract, they’re going to need $1000 just to buy the contract, and if the share price ends up going up to say $11 instead of going down, that $1000 is gone plus they’re down another $100.