Gabriel Sechan wrote:
From: Andrew Lentvorski <[EMAIL PROTECTED]>
Because shorts invariable have call dates and that makes timing
problematic.
This is the main problem with shorting a stock. Unlike buying a
stock, where you can keep it indefinitely, shorting a stock can pound
you horribly because you *must* exercise the purchase by the call date.
It also has no cap on losses. Buy a stock, and the most you can lose is
what you paid. Short it, and the price can raise into infinity, you can
lose any amount
Gabe
Normally, you'd be right. In this case, you needn't worry. It was seen
by most that TSOG had no case. Many put their money where their mouth was.
I followed the Yahoo Financial SCOX stock forum for years during the
course of this case. There were many posters in that forum who shorted
SCOX. Nearly all when it was $15+/share, more than a few at $22+. Most
said they were not getting out any time soon. I expect more than a few
just made a nice bundle.
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Best Regards,
~DJA.
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