Serious investors don’t typically trade in “naked” shorts. They usually cover the downside risk with an “at-the-money” call option (the right to buy shares at t

Serious investors don’t typically trade in “naked” shorts. They usually cover the downside risk with an “at-the-money” call option (the right to buy shares at the current trading price). If the price goes down by an amount that exceeds the premium of the option, then they make money. If the price goes up, then they only lose the option premium, because they can use the call to re-buy the shares to return. You can either run this strategy repeatedly, using 3-month options, or buy extremely long-term options and keep it open for as long as the options last.