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Re: Rawnoc post# 161555

Sunday, 01/29/2012 12:42:54 PM

Sunday, January 29, 2012 12:42:54 PM

Post# of 312101
That might be true if you weren't holding a volatile stock like JBII.

Here's how it works.

JBI rises on hype. You short against the box. This greatly reduces your liability and guarantees availability of shares to short, protections a normal short does not enjoy.
The stock moves up, you do nothing as you have a neutral position. The stock moves down, you cover your short pocket the profit and maintain your position for the next move up.

Lather, rinse, repeat.

It's actually a great strategy for traders, particularly those who got heavily discounted PIPE shares.

Volume and Volatility are what make the strategy work. All while reducing risk.


"The world is a dangerous place, not because of those who do evil, but because of those who look on and do nothing."
-- Albert Einstein

Volume:
Day Range:
Bid:
Ask:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y