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This is one of the most important things that those "if you're so sure Apple/Gold/etc is overvalued why don't you short it?" people ignore. Maintaining a short
by jordanb 16y ago
This is one of the most important things that those "if you're so sure Apple/Gold/etc is overvalued why don't you short it?" people ignore.
Maintaining a short position is expensive. And even if you can afford it, holding it for too long can kill any upside you get when it finally does collapse. I can say that Gold is overvalued but I won't short it, and be perfectly consistent in saying that, because I admit that I have no idea how long it'll take for the bubble to pop.
- aspiringsensei 16y ago>Maintaining a short position is expensive Short positions on companies like Netflix should be initiated using capped-loss derivatives instead of assuming the unlimited risk of selling the company's stock short. Buying a long-dated put option is often the best way to short something, assuming you have conviction.
- deleted 16y ago[deleted]