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why would anyone be short a stock with short interest that high? you're just begging to get stomped all the funds getting trashed are getting showed up as amat
by anewaccount2021 6y ago
why would anyone be short a stock with short interest that high? you're just begging to get stomped
all the funds getting trashed are getting showed up as amateurs....by actual amateurs!
short trades are incredibly dangerous, you need a trade to go negative, but quickly before too many others also short. real, quality short opportunities are so rare that I just use a simple rule...never short.
- allie1 6y agoyeah, any "uncapped downside" situation should be avoided, especially with other people's money. They are betting on the market being irrational and then coming to their senses? Come on, the level of activity there, it's obvious it's not happening. Everyone in that stock is there for one reason, and two reasons only - to squeeze melvin dry and make money. Any downfall will happen AFTER the first condition is met.
- jfengel 6y ago"why would anyone be short a stock with short interest that high" is kind of funny, in a "nobody goes there anymore, it's too crowded" kind of way. They short the stock because the fundamentals say to short the stock, regardless of the games being played. The short interest is high because the underlying company is in very bad shape. It should probably already be bankrupt. Short trades are dangerous, and dangerous in a new way. The old maxim remains true that the market can remain irrational longer than you can remain solvent. Or in this case, retail investors will pay to enjoy your suffering longer than you can remain solvent, and consider it a cheap price to pay. Still... if I had bigger appetite risk, I'd short this stock myself. The price is obviously too high, and there's a ton of money to be made by shorting it. But the horizon on that profit is longer than I have the stomach for.