4 ms·

I intuitively believe that from the beginning, markets are usually overly optimistic on the dawn of a new tech and I'm anticipating a correction in perhaps a fe

by rmholt 2y ago

I intuitively believe that from the beginning, markets are usually overly optimistic on the dawn of a new tech and I'm anticipating a correction in perhaps a few months or a year. Anyone knows how to short a stock on that time frame?

cosmic_quanta 2y ago
You can continuously roll options contracts. I don't know if any broker offers an order type to roll automatically; otherwise I really like Alpaca's API (https://alpaca.markets/ https://alpaca.markets/) to do it yourself.
Graziano_M 2y ago
If you need to ask how to short a stock you should not be doing it.
- tomlue 2y ago
  everybody has to start somewhere...
  - agency 2y ago
    maybe not with financial derivatives with potentially unlimited downside
    - missedthecue 2y ago
      The point of financial derivatives is that the downside is limited.
      - airstrike 2y ago
        no, that's the point of hedging. derivatives can have unlimited downside
      - jnwatson 2y ago
        Only if you're long. There are plenty of unlimited risk options strategies.
      - dhbanes 2y ago
        This is absolutely not true.
      - vgatherps 2y ago
        “Financial derivatives” and “downside is limited” should never appear in the same sentence without strong conditions on what sorts of derivatives/ combos of them
      - frank_nitti 2y ago
        I think people in the thread are mistakenly conflating the idea of buying options with writing options to sell, the latter of which can have unlimited downside
jedberg 2y ago
You can generally buy options contracts for up to two years in advance. If you've never done options before, make sure you do some reading. It's not like stock -- if you're wrong you can loose everything, and in some cases, loose more than you have. Certain options contracts have unlimited downside (As in negative gains). So be careful. But google for "options contracts". You'll need a broker and they will most likely make you get approvals for it. Usually you have to show some financial sophistication.
- michaelcampbell 2y ago
  > if you're wrong you can loose everything, and in some cases, loose more than you have. Certain options contracts have unlimited downside (As in negative gains). Only if you write/sell them. Buying an option you can only lose 100% of what you paid for it. (Which is the outcome most of the time.) Your overall point of educating yourself on how options work before you jump in is well advised though; options are risky and way more leveraged than stocks.
  - jedberg 2y ago
    > Only if you write/sell them. Of course, but if you don't know what you are doing, it's hard to tell the difference, especially since selling options can make you a lot more money so it looks like the better play if you don't know what you are doing.
rco8786 2y ago
Buy put options with a long expiry. Same as always.
jejeyyy77 2y ago
lol
andy_ppp 2y ago
In the UK you can spread bet on the market and stocks, i.e. Trading 212, otherwise any share broker should also be able to do it (probably at higher cost).
brigadier132 2y ago
Let me give you a piece of hard earned advice. You should only ever short companies when you have information that other people have not realized yet that will immediately affect the stock price. How you do that without breaking the law is up to you to figure out. Thinking "AI is a bubble" is not a good enough reason to short a company.
helsinkiandrew 2y ago
Many brokers support shorting - Interactive Brokers for example. Unlike options you can sell short and hold the position for as long as you can fund it - cover the cost of repurchasing the shares if it goes up and pay dividends etc. The trouble with shorting meme/viral/bubble stocks is the price may go a lot higher in the short term
jnwatson 2y ago
The lowest risk choice for an unbounded time horizon is simply to short the stock. You can do this in a normal brokerage margin account.
kobalsky 2y ago
You may be right but even if so, timing the market is ridiculously hard, specially when shorting. I don't recall who said it, but if you put the same unexperienced investor in two paralell universes, one where they short and one where they long, the more likely outcome is that they will lose money on both. The opening position is just one part of the equation.

by rmholt 2y ago

cosmic_quanta 2y ago

You can continuously roll options contracts. I don't know if any broker offers an order type to roll automatically; otherwise I really like Alpaca's API (https://alpaca.markets/ https://alpaca.markets/) to do it yourself.

Graziano_M 2y ago

If you need to ask how to short a stock you should not be doing it.

tomlue 2y ago
everybody has to start somewhere...
- agency 2y ago
  maybe not with financial derivatives with potentially unlimited downside
  - missedthecue 2y ago
    The point of financial derivatives is that the downside is limited.
    - airstrike 2y ago
      no, that's the point of hedging. derivatives can have unlimited downside
    - jnwatson 2y ago
      Only if you're long. There are plenty of unlimited risk options strategies.
    - dhbanes 2y ago
      This is absolutely not true.
    - vgatherps 2y ago
      “Financial derivatives” and “downside is limited” should never appear in the same sentence without strong conditions on what sorts of derivatives/ combos of them
    - frank_nitti 2y ago
      I think people in the thread are mistakenly conflating the idea of buying options with writing options to sell, the latter of which can have unlimited downside

jedberg 2y ago

You can generally buy options contracts for up to two years in advance. If you've never done options before, make sure you do some reading. It's not like stock -- if you're wrong you can loose everything, and in some cases, loose more than you have. Certain options contracts have unlimited downside (As in negative gains). So be careful. But google for "options contracts". You'll need a broker and they will most likely make you get approvals for it. Usually you have to show some financial sophistication.

michaelcampbell 2y ago
> if you're wrong you can loose everything, and in some cases, loose more than you have. Certain options contracts have unlimited downside (As in negative gains). Only if you write/sell them. Buying an option you can only lose 100% of what you paid for it. (Which is the outcome most of the time.) Your overall point of educating yourself on how options work before you jump in is well advised though; options are risky and way more leveraged than stocks.
- jedberg 2y ago
  > Only if you write/sell them. Of course, but if you don't know what you are doing, it's hard to tell the difference, especially since selling options can make you a lot more money so it looks like the better play if you don't know what you are doing.

rco8786 2y ago

Buy put options with a long expiry. Same as always.

jejeyyy77 2y ago

lol

andy_ppp 2y ago

In the UK you can spread bet on the market and stocks, i.e. Trading 212, otherwise any share broker should also be able to do it (probably at higher cost).

brigadier132 2y ago

Let me give you a piece of hard earned advice. You should only ever short companies when you have information that other people have not realized yet that will immediately affect the stock price. How you do that without breaking the law is up to you to figure out. Thinking "AI is a bubble" is not a good enough reason to short a company.

helsinkiandrew 2y ago

Many brokers support shorting - Interactive Brokers for example. Unlike options you can sell short and hold the position for as long as you can fund it - cover the cost of repurchasing the shares if it goes up and pay dividends etc. The trouble with shorting meme/viral/bubble stocks is the price may go a lot higher in the short term

jnwatson 2y ago

The lowest risk choice for an unbounded time horizon is simply to short the stock. You can do this in a normal brokerage margin account.

kobalsky 2y ago

You may be right but even if so, timing the market is ridiculously hard, specially when shorting. I don't recall who said it, but if you put the same unexperienced investor in two paralell universes, one where they short and one where they long, the more likely outcome is that they will lose money on both. The opening position is just one part of the equation.