Capitalist, purely for my education explain your position.
I am curious because I see where you can make money in a short position; however, if this goes against your position, you stand to lose a lot more then you would make.
For example, if it goes against my position, I have a specified amount I will lose and you have a specified gain (e.g. it can only goto zero).
If it goes for my position, I stand to gain a large return on my investment (admittedly some at your expense), and you stand to lose a large amount. If Zion announces a commercial find, this stock will gap hard against you. In that the highest you could have started your short position is around 6.80 a share, I will assume you are averaged in around 4 to 5 per share. If and when Zion announces a commercial find, the stock will gap above that and you will instantly be out of the money with little probability of it coming back down.
I guess I would like to know what a short position strategy is at this point?
Seems that the payoff is limited compared to the potential for great loss?
Do you have an average percentage rate for the shares you are borrowing? Does that come into play as time goes by, after all, Zion is behind schedule (as is expected with an exploratory well normally, but they are also respecting Jewish High Holy days extending the delays)? The daily interest must be cutting into your profits.
I ask purely from an educational perspective. Thanks.
