4 ms·
Shorts are never an obvious trade, the downside risk is too high, even if you're eventually directionaly right.
by Vecr 2y ago
Shorts are never an obvious trade, the downside risk is too high, even if you're eventually directionaly right.
- bob1029 2y agoIt is impossible to overstate how risky options are in this situation. The implied volatility for NVDA is astronomical. Put differently, the OP isn't the first one with the idea to short them, so this incredible demand for options drives the premiums up substantially. That stack of (temporary) paper you are paying for is likely way more expensive than you think it is.
- wnc3141 2y agoShorts I think are only useful if there is an imminent and concrete devaluation event such as defaulting on credit etc. A general predicted market downturn is hard to tie to stock behavior, especially within a concrete time frame.