I hate to jump in here, since it might sound too much like gloating (OK, I promise to not mention my average buy price of 32.5), but the current round of shorting leaves me mystified. Speaking as a recovered DDIM short-a-holic, of course.
If the short's idea is that DDIM will crater, say, at least down into the low twenties (and I've heard estimates of lower than that), what is causing the urge to short at this exact moment? The stock keeps rising; they will almost certainly have more sales announcements; the stock keeps going up; they will probably make or exceed this quarter's numbers; and did I mention the stock keeps rising??
If you are so sure it's going to fall big, why not wait for a convincing "start of falling" to occur? Sure, you'd lose the topmost five or ten points, but at least then when you did short, you'd a) no longer be fighting the tape; and b) wouldn't be losing all this money in the meantime as the stock continues to rise.
Heck, at some point (maybe shortly at this rate) I'm going to begin taking some money off the table, and eventually (within a year?), when the stock convincingly breaks, I'll probably start getting back on the short side. But now? No way; the money's to be made on the long side of this one, for now...
Just my two cents,
-- Pete
I HAVE SOMETIMES BEEN RIGHT!! |
