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Re: 'OptionSellers.com' Goes Dark After "Catastrophic Loss Event" In NatGas "Rogue Wave" 

By: ribit in POPE 5 | Recommend this post (2)
Mon, 19 Nov 18 3:50 AM | 80 view(s)
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Msg. 13861 of 62138
(This msg. is a reply to 13855 by Zimbler0)

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...sounds a lot like that game where a guy has three cups and one pea and you have to guess which one of the cups the pea is under.




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Liberals are like a "Slinky". Totally useless, but somehow ya can't help but smile when you see one tumble down a flight of stairs!




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The above is a reply to the following message:
Re: 'OptionSellers.com' Goes Dark After "Catastrophic Loss Event" In NatGas "Rogue Wave"
By: Zimbler0
in POPE 5
Mon, 19 Nov 18 2:43 AM
Msg. 13855 of 62138

Ribit > ...I don't understand "shorting" nor the "infield fly rule"


Shorting I can help you out with.

When one wants to 'short' a stock, one borrows the shares then
sells them. Later, one has to buy the shares back and return
them. If one buys them back at a lower price than one sold them
for then one turns a profit.

I read someplace, that the most one can make shorting a stock, is
what one got for the sale of it. (Minus the commissions,
of course.)

Now, if the share price of the stock goes up and then one has to
buy the shares at the higher price, one loses money.

How much can one lose shorting if the stock goes up? Theoretically there
is no limit. If the stock goes up by over a factor of ten . . .
One could lose over ten times what one paid for it.

But if one buys 'long' as one buys and holds the stock hoping
it goes up . . . There is no theoretical limit on how much one could
make. And, the most one could lose on it is what one paid to buy it.

And, finally, there is the 'naked short'. Where the scam artists
don't even bother to borrow the shorts before selling them.

Zim.


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