Some help to explain short sales and how, this particular post is inaccurate.
Message 33124493
Ease of explanation
1 share is short on Aug 30th and on that date the share price was $1.00
Short report comes out indicating 1 share short as of Sep 1
However, the guy/gal covered that short on Sep 1 at 90c making 10c
Now there are NO shares short.
On Sept 14, the same person shorts 2 shares. at 2.00
Sept 15 report comes out and it says shorts have doubled to 2
On the same day, buddy covers both shares, at 1.80 and again there are NO shares short.
You cannot assume as the poster has, that the shares short have a specific profit/loss built into them because a bimonthly report is totally unreliable, the only reliable short report is the daily short report which costs money to see.
Lastly, a short does not have to be covered on the open market, which deals with the "run Shortie run" that longs assume must occur.
Lets suppose buddy did a ZEN PP at $2.00 and decided when it was $3.00 to short the stock. He has now locked in a $1.00 profit and if lucky, if the stock drops, more than that. But if the stock were to go to $5.00 all he does is when his warrants come tradeable, he exercises his warrants, fills his account with new shares and uses the exercised warrants to cover his short still getting his $1.00 profit.
I post this because the ZEN boards have absolutely no idea how shorts work.
So to prove the point, I covered my $3.70 short at $3.30 average today.
So, if the stock pops back up to $3.70 today and closes at $3.40 and I reshort at $3.70 and do not cover today, have I lost money or have I made 40c with a potential of 70c?
I will reshort again today, but do so based on ebb and flows of the chart or common points known as support and resistance or more importantly fabricated creations of momentum or the loss thereof. |
