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Could do similar things to what Mark Cuban did to hedge his exposure of Yahoo stock after the purchase of his company. Basically shorting against your holding [
by winslow 8y ago
Could do similar things to what Mark Cuban did to hedge his exposure of Yahoo stock after the purchase of his company. Basically shorting against your holding [1].
[1] https://www.quora.com/How-did-Mark-Cuban-save-his-wealth-from-the-dot-com-crash-He-sold-Broadcast-com-for-5-7-billion-in-Yahoo-stock-How-did-he-get-out-before-it-all-went-down https://www.quora.com/How-did-Mark-Cuban-save-his-wealth-fro...
- LanceH 8y agoIt's not shorting if you're holding, it's just and option.
- nostromo 8y agoPeople use “short” as a synonym for holding a put option all the time.
- notyourday 8y agoBeing a long on in the money PUT is called synthetic short.
- rhapsodic 8y ago>Could do similar things to what Mark Cuban did to hedge his exposure of Yahoo stock after the purchase of his company. Basically shorting against your holding [1]. I interpreted that article to mean that he shorted the sector (Internet) that his holding (Yahoo) was part of, but without appreciably shorting his actual holding. (less than 5% of the fund he shorted.) Had the Internet sector (and therefore the fund) went up while Yahoo went down, he could have lost from both directions.