***My positions are at the bottom for full transparency and this is just my personal opinion.***
Selling pressure is going to continue for the next few weeks because so many shares became unlocked. But here’s why – and I know from experience:
When insider shares become unlocked, typically an insider (employee or executives etc.) overnight now has so much of their net worth tied up in these shares that even if they believe in the company long term, it’s irresponsible to have that much of your net worth tied up in one single company. So they sell to diversify. All the financial consultants that these employees hire to navigate this new wealth and taxes tell them this.
So no matter what, a lot of insiders sell a lot of their shares because it’s the responsible thing to do when your net worth grows 2x-20x overnight – or so says the industry.
I know institutions will be cautious and wait for a little bit for the bulk of the insider selling to subside and this also makes a lot of sense.
I have one family member that went through this process and I have another family member starting to navigate this same process. They had a lot of stock options at a large tech company and when they went public, as soon as the shares became unlocked, they and almost all of their friends at the company sold a lot to diversify their wealth over the next 1-2 months. They did keep good sized positions though.
Selling will subside over the next few weeks and when that bottom comes, buying will resume, hopefully by institutions. Hopefully by ARKF too!
There are also next quarter earnings coming out around September as well. If those earnings look anything like the June earnings, watch out because this will fly.
I’ve been loading up a lot lately and here’s where I’m at:
* 150 $50 2023 LEAP options for the long-term and I’ll keep buying these under $18.5.
* 3500 shares that I’m selling far out of the money calls on b/c IV is so high
* Selling puts on 7,000 shares that if assigned I’ll turn around and sell very tight to the money calls on b/c IV is so high
How are you all handling the SOFI dip?