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Projects timelines are like naked shorts in the stock market. You have a capped upside but unlimited downside - things can never be done faster than instantly
by mason55 11y ago
Projects timelines are like naked shorts in the stock market. You have a capped upside but unlimited downside - things can never be done faster than instantly but they can take literally forever (i.e. just never get finished).
- mianos 11y agoYou are being a bit loose with the term 'unlimited' but I guess that's marketing for you. You stand to lose the difference between your strike and zero. Last time I looked that's not 'unlimited'.
- tbrownaw 11y agoI thought 'strike' was an options thing rather than a short thing?
- mason55 11y agoI'm not really sure what you mean. If you naked short without covering with options then the price can pretty much go up forever and you cover the difference. I don't understand where zero comes into play.
- mianos 11y agoSorry, my mistake. I was thinking the option on the back of it. Yes, you are correct, for simple stocks, if the stock price rises forever you theoretically have the possibility of infinite losses. Practically I'd not use infinite, but that has busted many people.