Warrior Met Coal, Inc (HCC)

[WallEye87]

I hope I understand the question. The standard trading agreement is a seller of a short position in a stock is liable for any dividends paid to the shares shorted. In the case of a cash dividend, it is either settled from their cash position or added to their margin balance. Big fluctuations can result in the dreaded margin call.

Shorts often aren't compelled to fill on a dividend announcement, because of the customary drop in PPS following the exit of cash from the company for the payment. In this case (HCC), the special dividend announcement was part of a wave of other positive news, so I did not expect the drop in PPS to be a net wash out. But... at this juncture, it was.

Opinion only, not advice