A lot of Redditors hate the Reddit IPO | Reddit warned us that its users were a risk factor, and boy do they sound excited about shorting its stock.::Reddit seems like a likely candidate for a meme stock. But the actual reaction suggests that r/WallStreetBets isn’t going to send the stock to the moon.
You buy a put option and if it tanks, you sell the put and profit. Doesn’t mean you actually end up with stock in the end. And why would you if you expect it to continue downward? Buying a long position is making the assumption that a stock is undervalued, and I guarantee you, if that stock goes down 90% it’ll still be overvalued.