InvestorsHub Logo
Post# of 200689
Next 10
Followers 57
Posts 11182
Boards Moderated 2
Alias Born 04/25/2012

Re: Patience 1 post# 154114

Thursday, 02/25/2021 9:05:40 PM

Thursday, February 25, 2021 9:05:40 PM

Post# of 200689

Im sure its less for this small price per share.



It's not. The $2.50 rule applies whether the stock is $2.49 or $0.01. The collateral required ($2.50 per share) makes shorting a low reward, high risk play.

The only time it makes sense is if the MM has a large cache of shares, like say, 25M shares, where they don't have to borrow them. They sell short at the beginning of the day and cover late in the day, i.e., our sucker's rally.