Sudre
Active Member
So here is a little math I think is relevant and am happy to share. Say person "A" shorts TSLA at $300 at a margin requirement of approximately $10k per hundred shares, "A" sells 1,000 shs. At $260 "A" decides to close out and is a buyer. His profit is $400,000. Profit on his $100k margin is 400% in a couple weeks. So do you think a good portion of the buyers today are short profit takers? "A" doesn't need to switch and "ride it back up", he just needs to buy, anything under $300 to lock in profits. I know this comment will get a bunch of disagrees but I hope for one"informative"![]()
If there are no fees or interest in shorting then I will start tomorrow. I had no clue it was just free money! Heck with free gambling like that you can buy almost any day and make a profit some time during that day or the next morning.
It's the fees I have always been curious about altho I don't think I will ever short anything. I did start playing with options last week. Sold one for a small gain today just to see how the entire process works.... It appears buying Calls when Tesla is at 245 a share is going to pay off nicely. And thanks everyone for the options lessons over the last few years. Now the whole buying Puts when markets are up as cover makes sense.