Say one has some SpaceX stock, subject to an x day lockout period, but they believe that the share price will be less than the initial IPO price after x days. Or even if it’s not, they’d prefer to lose any gains over taking any chances. What instruments are available to this person to diversify the value at something close to the initial share price? A financial advisor mentioned European-style puts, but I’m not sure that’s allowed in this case.
I’m not an expert on securities law, so I’m not giving legal advice here, but I’d guess a put option or warrant with cash settlement would be allowed. One with physical settlement would probably be prohibited under the lockup.