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Re: Hoskuld post# 400818

Tuesday, 01/31/2023 4:45:18 PM

Tuesday, January 31, 2023 4:45:18 PM

Post# of 462198
Will there be a squeeze?

Shorts are rarely retail newbies. They are professionals and are fully hedged.


Thank you for that perspective. Good to learn that the shorts will be Ok either way. Dinner table conversations will be congenial, no matter what.

Nonetheless, if the AVXL share price fails to sink, all short positions will have to be covered. The only way I know that can happen is by the buying of real shares on the market, by the holder of the short position, at market prices. Let me know if that's wrong. If it's correct, there will be lots of shares being chased by the shorts --- a short squeeze situation, correct?

Exactly, what is a "hedge?" How can that prevent necessary share purchases to cover the failed short position?
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