Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: greeneyes

To short you merely borrow the shares in question, sell them and expect to repurchase them cheaper to return them. If you borrowed 100 shares at $10 and sell them and the price goes to $100 you owe margin interest on the extra $9000 in value plus $10,000 if you end up throwing in the towel and covering.

If you purchased call options that end up being in the money for you (I believe their are “in the money” calls equivalent to over 100M + shares) the losing side has to produce those shares for you to sell or pay you the equivalent. There was probably some huge out of the money calls bought that cost next to nothing for strike prices in the $10-100 range that will be fat in the money tomorrow. There will be a great weeping and gnashing of teeth...


1,427 posted on 01/29/2021 12:48:55 AM PST by Axenolith (WWG1WGA!!!!)
[ Post Reply | Private Reply | To 1363 | View Replies ]


To: Axenolith

The guys with naked shorts are gonna be hurting.


1,428 posted on 01/29/2021 12:58:42 AM PST by greeneyes ( Moderation In Pursuit of Justice is NO Virtue--LET FREEDOM RING)
[ Post Reply | Private Reply | To 1427 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson