3 ms·

Can someone explain how you would actually do this? Assume their thesis is true. How would you short it? What's some real figures and returns if true. I'm not

Can someone explain how you would actually do this? Assume their thesis is true. How would you short it? What's some real figures and returns if true. I'm not sure I even understand the bet/prediction. Is the bet it will drop in the next 5 years and drop lower than now and then stay lower until the 5 year mark, then we profit? How much do we profit to investment? Saying there will be a substantial fall sometime in the next 5 years seems to me still hard to profit from, but I don't know the numbers.

chillacy 6y ago
Hmm, I assumed the author implied literally short selling the underlying stock but I think that's a bad idea: potentially unlimited losses. The author may even be correct but the market can be particularly irrational around growth stocks... Another method might be to sell calls or call spreads, date it out a few years and hope the underlying doesn't rise too much.