Man Davies

4982 posts

Posts (4982)

Man Davies CBL 6 years ago #912

$CBL

To the one throwing up the wall. You want to meet me somewhere? I want to -talk- to you. :>|

Man Davies WPG 6 years ago #917

$WPG

-Friendly bit of advice-

Lets say the average short seller here shorted $2,500 worth of stock. Now, lets say the company announces that Brookfield made a BUYOUT offer at $12.50 a share. $12.50 divided by .6845 equals 18.2. The share price would INSTANTLY jump to $12.40. That means you would receive a MARGIN CALL, in the amount of $45650 for a stock you were trying to make $500 shorting on. So, effectively, you are risking a $45650 LOSS to get a $500 GAIN.

You would be RUINED. Your trade account would be wiped out. They would SUE you and take everything you own. NOT VERY SMART

Man Davies CBL 6 years ago #919

$CBL

OR, lets say the average short seller here shorted $2,500 worth of stock. Now, lets say the company announces that Brookfield made a BUYOUT offer at $12.50 a share. $12.50 divided by .1876 equals 67.2. The share price would INSTANTLY jump to $12.40. That means you would receive a MARGIN CALL, in the amount of $168000, for a stock you were trying to make $500 shorting on. So, effectively, you are risking a $168000 LOSS to get a $500 GAIN.

You would be RUINED. Your trade account would be wiped out. They would SUE you and take everything you on. NOT VERY SMART

Man Davies CBL 6 years ago #920

$CBL

Typically, when a company announces they are in BUYOUT talks, the stock INSTANTLY jumps 100%. Can you imagine, as a short seller, having that happen to you? By the time you are done chasing the stock, it COULD be up 600%. That is a FAR CRY from the little spread you would make trying to short it.

DONT BE A FOOL :)