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notbrad

05/20/20 6:56 PM

#283676 RE: jdheart101 #283664

Incorrect. No market maker will take that kind of exposure even for a day. The shorts will need to pony up or the market maker will buy shares to cover. I still see a very good potential for a short squeeze. Because most of these are boutique short funds and where are they going to get this kind of financing till Nov 1. The Fed will not finance them, will they (LOL)?

I'm beginning to think that this was a (dare I say it) brilliant move by our leader :)

Horseb4CarT

05/21/20 1:36 AM

#283800 RE: jdheart101 #283664

I’m confused but shares that are sold short are supposed to be borrowed from street name accounts, right? Wouldn’t a naked short be something like a fake borrow, like some type of IOU?

Assuming something like that, if the true owners of the borrowed shares were to sell their shares and if additional buyers show up wanting to buy truckfulls of shares, could that scenario cause a short squeeze that would not be possible to delay delivery of shares until November?

Or as another poster posited, a margin call situation could force covering prior to November?

It can’t be as easy as waiting to cover in November. Bigger is calling out a short squeeze and he must know how these positions work.