OT - shorting
Got to get my 2 beans in on this before people get completely tired
of this on VI board. Like everyone here (almost), I think the
major indices could take 1/3 cut and still be overvalued. And I would
not be surprised to see it happen in the next couple months. However,
I also would not be surprised to see another couple years of mostly up
with no corrections bigger than 10-20%. That said, I've been playing
the downside off and on for the last year - mostly amzn, amat, amtd,
mu, irid, and a few others. However, I've done it with put options
rather than short position. Anyone going short should read Michael
Burke's 90/10 piece and consider all the good reasons to do puts
rather than short (limited losses, greater than 100% upside, etc.).
My big winners in some of the positions mentioned have more than made
up for the worthless expiration of some puts.
James, since your thesis is that this downdraft will happen in
next 3 months, you should be in put options on those stocks - no
worries about borrowing stock or getting squeezed out. |
