@thewallstreetskinny: To be clear, the “over allotment” option is for 15% of the offering, so they sold 555 million shares plus an additional 83 million. It’s that extra 83 million shares (or $10 billion) which is the over allotment option, aka “green shoe” that they are short. So why not just try and tank the IPO?. Even though they might stand to make a few bucks if they need to actually buy shares back, it’s not worth the reputational risk and losing book runner status on future IPOs. For a full deep dive into what comes next now that SpaceX is trading, check out our Substack for our full breakdown coming this week!

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Wednesday 17 June 2026 01:55:25 GMT

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Comments

Bananas22 :

don't they make more money exercising the greenshoe option if the price stays high vs buying at market rate if the price drops?

2026-06-17 12:18:58

Captain Theodore :

It’s going to 60 bucks within one year. Every IPO looses 50% of its value.

2026-06-18 04:27:34

matimo313 :

have fun shorting it. I'm sure it'll work out well against a sea speculative buying

2026-06-17 03:19:21

cryptotrader321 :

Teaching this mechanism to my class at UChicago since it’s similar to new token launches in crypto!

2026-06-17 02:45:25

StrangeTamer :

I haven’t seen anything on my Bloomberg screen yet regarding this.

2026-06-18 12:24:36

Alex :

yep. I have target $128.

2026-06-18 13:51:00

cabledog :

they were manipulating the stock on day 1, wouldn't let it fall, no thanks

2026-06-18 06:52:35

Sid :

So who looses?

2026-06-28 19:02:45

Jordan :

he teaches with clarity and purpose. Respect to Mr Steve 👏.. @Steve Sotero

2026-06-17 19:21:41

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