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You could also short stock
The inverse etfs are not a good way to short stocks. They are only used when want to take leverage on an intra day short due to end of day resets. You can borrow stocks and go short if you broker allows for it. Else use futures or options.
The simplest / lowest risk is a bear call vertical. Next easiest is a put diagonal. These are defined risk, positive theta option strategies that don't require a lot of capital, are easily understood, and can be done in non-margined accounts with option permissions.
You can short the stock? Lol is this a trick question 😂
Shorting individual securities can mean short selling; selling a security you don’t own. In order to do it, your brokerage account needs a margin account. Shares of the security, individual stock in this case, are borrowed from a person who owns the stock and loaned to you. The broker dealer does the borrowing on your behalf and delivers the shares to your account. You then sell the borrowed shares and receive the proceeds of the sale. The idea being that if you are bearish on the stock, you will be able to buy it back at a later date after it has decreased in value, at lower price than you sold it for initially. You then return the shares you purchased at a discount to the original owner and keep proceeds. Obviously you can see how this strategy has the potential go sideways very quickly if the stock goes up instead of down and you have to cover your short by purchasing the stock at a higher price than you sold it for.
Thank you all! Very helpful. So you borrow from broker on margin and you profit off the difference from buy price and sell price x number of shares?
Also make sure you understand your broker’s margin requirements.