CBRS IPO was today, shares were allocated at 185 and it opened for trading at 350 before hitting 386 and retreating. While people were focused on the IPO, here was an interesting nugget from the prospectus.
[https://www.sec.gov/Archives/edgar/data/2021728/000162828026029503/cerebras-sx1amay2026.htm](https://www.sec.gov/Archives/edgar/data/2021728/000162828026029503/cerebras-sx1amay2026.htm)
*"We will grant the underwriters the right to purchase up to an additional 4,200,000 shares of our Class A common stock from us to cover over-allotments, if any, at the initial public offering price less the underwriting discount."*
***Morgan Stanley, Citigroup, Barclays, and UBS Investment Bank are underwriters.*** This means that **these 4 banks get to profit \~700 million dollars** (assuming the opening price of 350) from using this option. This will materially lift their Quarterly earnings. And guess what happened to Citi and MS stocks right after the CBRS IPO opened for trading at **1:00 pm**.
I bought some July calls at 1:15 pm (post earnings expiry) for MS and C. Take look at what the price chart did today after 1:00 pm when CBRS opened (images not allowed).
Leaving it here, make what you will, perhaps another case of go where the puck will be instead of chasing it. Read the prospectus.