5 ms·
You can try. However, due to the precarious nature of the stock it would be hard to find anyone who will lend it to you. However, if you did find someone willin
by obtino 14y ago
You can try. However, due to the precarious nature of the stock it would be hard to find anyone who will lend it to you. However, if you did find someone willing to lend you a portion, it would cost you almost 100% in fees: http://www.reuters.com/article/2011/11/15/us-groupon-shortsellers-newspro-idUSTRE7AE16820111115 http://www.reuters.com/article/2011/11/15/us-groupon-shortse...
- bdr 14y agoNote that if you'd bought the put option mentioned in the article you would have made a 4x return in 6 months. No borrowing needed.
- MichaelApproved 14y agoBut you wouldn't use the same amount of capital on an options trade. For example, if you're bankroll is $25,000, you might use it all to short the stock but it would be foolish to use it all to buy a put. It's more likely that you'd use a much smaller fraction of your stock purchasing unit size for options trading since the risk of losing 100% is higher.
- retube 14y agoyou don't need to borrow the stock to short it. You could buy puts, sell calls, sell a CFD, spread bet...