InvestorsHub Logo
Followers 32
Posts 7648
Boards Moderated 0
Alias Born 10/07/2009

Re: ASimEE post# 26665

Monday, 06/20/2011 9:30:43 PM

Monday, June 20, 2011 9:30:43 PM

Post# of 54312
Risk. The lower you short, the more shares you have to short to hit a particular price point. X volume equals Y cost which depresses the pps. Every time they knock it down more, they have to short more. That is a HUGE risk. It takes more shares to short the same volume in dollars at a lower price point. If they can't find shares to cover with immediately, then their losses go up and up. Remember that they have to buy back shares to cover their position no matter if they are on the losing end or winning end.

IMO