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> There is a reason this man doesn't heavily short the same companies he criticizes yes, because in order to take a short position you have to predict exactly
by twister2920 3mo ago
> There is a reason this man doesn't heavily short the same companies he criticizes
yes, because in order to take a short position you have to predict exactly when the bubble is going to pop, which is different from predicting that at some point it will
- d4ng 3mo agoNot quite. You could buy a long-dated put if implied vol and current rates are amenable. This protects you against the underlying going up significantly. You might also predict that it won’t go up too much, and just short the underlying with a stop loss.
- KaiserPro 3mo ago> You could buy a long-dated put What leveraged? yeahnah thats not going to be profitable.
- solenoid0937 3mo ago> you have to predict exactly when the bubble is going to pop Not true.
- twister2920 3mo agoplease elaborate, I love learning new things
- rsynnott 3mo ago“Exactly” is pushing it, but you’re going to have to be pretty close, because the instruments that you use to short a company (either put options or actual short sales) are _not cheap_.