Horrible advice, unless you’re really rich and really risk tolerant
You know what happens if a stock runs while you’re in a short position? You’re fucked, and if you can’t stand the pressure, possibly liquidated.
A stock cannot go below zero. Long, you lose your investment, short, if a stock goes up, your risk is literally infinite. You will owe money when you’re wrong.
If you want to short and you’re not rich, buy far out puts, or buy puts and calls on either side and capture the volatility
Look for options with low implied volatility that could move a lot and have low prices due to low IV. For instance Twitter puts printed for me, but at least my losses are capped until the expiry.
Don’t try to time the markets or you will be crushed
I was short SolarWinds with puts and it ran on me Monday, I came out ahead overall but it was a five figure fuck up
Horrible advice, unless you’re really rich and really risk tolerant
You know what happens if a stock runs while you’re in a short position? You’re fucked, and if you can’t stand the pressure, possibly liquidated.
A stock cannot go below zero. Long, you lose your investment, short, if a stock goes up, your risk is literally infinite. You will owe money when you’re wrong.
If you want to short and you’re not rich, buy far out puts, or buy puts and calls on either side and capture the volatility
Look for options with low implied volatility that could move a lot and have low prices due to low IV. For instance Twitter puts printed for me, but at least my losses are capped until the expiry.
Don’t try to time the markets or you will be crushed
I was short SolarWinds with puts and it ran on me Monday, I came out ahead overall but it was a five figure fuck up
Just because it doesn't work for you doesn't mean it won't work for others.
Options can be safer. But I don't trade in options. I also limit my margin and use aggressive stops.