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Re: Edward post# 47723

Monday, 04/01/2019 5:38:48 PM

Monday, April 01, 2019 5:38:48 PM

Post# of 70340
I like the idea of shorting as a hedge - but why not just buy Puts to insure their gains?

The other part about the shorts I don't understand is: WHO is lending the shorts their shares?

I was approached by E-Trade and they wanted me to lend-out my shares for like an 8% annual interest rate.

But if I lent the shorts my shares when ACB is trading at $9/share and then a year later if the shorts are successful at wrecking the company's share price - I'll get my ACB shares back when ACB is trading at $5. So I lose $4 because of the shorts and I only gain 8% interest.

So who in their right mind would lend the shorts their shares?
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