3 ms·
It is already down to 58 from yesterday close at 72 how much will the short sellers make if it opens at 58$ in half hour?
by noloblo 4y ago
It is already down to 58 from yesterday close at 72 how much will the short sellers make if it opens at 58$ in half hour?
- noloblo 4y ago72$ puts expiring Friday are 2.54$ 60$ puts expiring this Friday March 24 are 25 cents at yesterday close So if they open at 6.54$ and 1.25$ respectively the short seller (hindenberg) potential gains from sq block short via short term puts are 6.54-2.54 = 4x100 = 400$ per contract 1.25-.25 = 1*100 =100$ per contract If they had bought 1000 contracts of each that is 400k and 100k respectively for the 72$ and 60$ sq put!!
- Gh0stRAT 4y agoI feel like $500k wouldn't come close to paying for the two years of research that went into this report.
- deleted 4y ago[deleted]
- noloblo 4y agoSo for 72 puts they opened at 13.54 and hence it's 1100 $ gain per contract The 60 puts are 3.25$ hence gain is 300$ per contract Assuming hindenburg bought a 1000 of each 1100000 on the 72 puts and 300000 on the 60 puts as Sq block is now trading at 58$ much to jacks chagrin That's a cool 1.4 mn $ Is this legal if so why isn't everyone doing it?!
- hef19898 4y agoBecause it is extremely risky, even if you are right, and extremely capital intensive. That being said, there are loads of short sellers out there doing exactly that, all the time, with all kinds of companies.
- propercoil 4y agoWhen short sellers buy puts they usually buy 1-day expiring ones. The profit here can be 5x-10x the amounts stated here.