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You can create a synthetic short with options, no need to borrow any stock at all.
by buttcoinslol 7y ago
You can create a synthetic short with options, no need to borrow any stock at all.
- mrfredward 7y agoWith so many people wanting to bet against it though, those put options would end up mighty expensive.
- prepend 7y agoThat’s the whole point. Shorting at the right time is similar to buying puts while still compatible with your model.
- rwmurrayVT 7y agoNot only do you have to pick the right price direction, you have to pick the right timing and have it exceed the markets overall expectation. Even with a short of shares you have to manage to find a lender and beat the cost to borrow them.