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WamplerR

Joined: 01/20/2012 Posts: 1626
Likes: 1173


I think it’s that simple


You can have more than 100% shares shorted because of the way borrowing shares work, but it shouldn’t happen, because...

If you can get a quick spike in price, some of the shorts will be forced to buy cover. This will drive up the price, forcing more to buy cover. They are all fighting for a limited quantity of real shares to meet margin calls, and the Get Rich Quick crowd starts jumping in to the bubble too.

Of course Reddit people won’t buy and hold forever, once you turn $10k into $1m, there are life decisions to make. But a big fund could pull this by themselves. Go for a hostile takeover, and the shorts all have to fight to cover.

(In response to this post by SchmHoo)

Posted: 01/27/2021 at 8:38PM



+1

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Current Thread:
  Watched the NewReport last night on PBS -- GoochlandHoo 01/28/2021 08:22AM
  See e.g. tulip run up in -- Spudnut 01/27/2021 9:14PM
  Not sure people planted tulips as an F U movement -- Chesapeake HOO 01/27/2021 9:43PM
  They are -- Spudnut 01/27/2021 9:46PM
  But the end result will be -- Spudnut 01/27/2021 9:50PM
  Think it’s flawed logic -- hoos2008 01/27/2021 8:51PM
  Don't the shorts have a time limit, though? -- SchmHoo 01/27/2021 9:00PM
  Yes. -- 135Dobie 01/27/2021 9:15PM
  Assuming option expiry on Friday ** -- hoos2008 01/27/2021 9:02PM
  The Redditors have delivered their demands. -- JMHoo 01/27/2021 8:44PM
  LOL..."eat a dick" ** -- GoochlandHoo 01/28/2021 06:16AM
  #reddit ** -- Trigon 01/27/2021 9:09PM
  Or buy stocks. That works too. ** -- QBSacker 01/27/2021 9:35PM
  Mostly what's the current situation? -- SchmHoo 01/27/2021 8:23PM
  Sort of. Yes. I responded above about margin. ** -- 135Dobie 01/27/2021 9:00PM
  Copy and paste from a friend -- WamplerR 01/27/2021 10:09PM
  Thank you! ** -- CavMan1 01/28/2021 09:46AM
  I think it’s that simple -- WamplerR 01/27/2021 8:38PM

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