Initiate Short Burn sequence

[Swampgator]

This is going to be fun to watch the exploding heads over the next 3 months. Seeking alpha should be particularly entertaining.

 

[Rockster]

As each bearish argument topples, it's both entertaining and frustrating to see what FUD they come up with next.

 

[Chickenlittle]

As each bearish argument topples, it's both entertaining and frustrating to see what FUD they come up with next.

Not really. It’s actually boring. Same arguments recycled

 

[Brovane]

Between Seeking Alpha and the WSJ I am predicting some major breakdowns about February of 2019.

 

[Uncle Paul]

Real nail biting time for the shorts.

Seems that they are even having trouble borrowing enough shares to cover their shorts.

 

[xyeahtony]

$1billion lost today. im lol-ing. this happens literally every time and they still bet against Tesla.

 

[cpa]

For all your experts on shorting stocks, I have a some questions. I have not, nor do I intend to short any security, ever. I understand selling puts and calls, however. I just want to know how the system works or could work.

Let's say Mr. X owns 2,000 shares of TSLA in a long position.

Could Mr. X then borrow 1,000 shares of TSLA and short those shares?

Could Mr. X use 1,000 of his long shares as collateral instead of the 102% cash on deposit with the escrow holder.

Could Mr. X then use the proceeds from the short sale and invest those funds elsewhere?

If TSLA goes up in value after his short sale, does the fact that his in-kind collateral cover his position thereby obviating his need to cover with more cash?

Can he use his long shares to close out his position if the price goes up?

Can he use some of the proceeds from the short sale to close out his position if the price goes down and keep the difference as profit?

I know these techniques can be used by farmers in the commodities markets, as they can deliver the commodity after harvest if the price goes the wrong way and still make a profit on their crop. But I am not knowledgeable about the securities markets.

Thanks to any and all who respond.

 

[HankLloydRight]

Yes, it's called "Shorting against the box".. Short Sell Against the Box

It's when you want to short a stock you own (say for a short term play), but don't want to close out your long position (say for a long term hold).

Can he use his long shares to close out his position if the price goes up?

Yes, in most cases, I believe.

Can he use some of the proceeds from the short sale to close out his position if the price goes down and keep the difference as profit?

Unless I don't understand your question, that's pretty much why people sell short. To profit on the buy-back and return of the borrowed shares at a lower price.

 

[H2050]

And most shorts thinks they are smart and can predict the market.