To be honest, I never understand how the shorters work, nor the economics of it.
There is a huge short position, yet the pps has been going up significantly over the past 2 months. The shorts are already down a lot, and the higher we go, the more they will have to pay to cover. Why are they still holding ( eventually they have to see the error they made) and if they are covering, why dont we see that action yet? I doubt the modest volume is from the shorts...so what is their deal?
The shorts are already down a lot, and the higher we go, the more they will have to pay to cover. Why are they still holding ( eventually they have to see the error they made)
Shorts in the big funds play games you and I can't play. I'll explain that later when the market is closed. Shorts don't just short stocks they also buy the same stock. To a short, the higher the PPS goes the less risk for them to "short more" and they spread rumors and articles to drive the PPS higher so they can short with less risk and sell stock they are long in at the overvalued PPS. You need to think like a "short", I believe they, on the aveage, are better investors. The sole purpose of the "shorts is to get you to do what they want you to do, and that is why buy and hold is the best plan for most investors. The PPS will fall when they are ready to make it fall, just hang in there and don't set a stop-loss because in the end we are going higher !
So true, Super Bowl, for all I know the shorts may already own 13 million shares under various accounts. They could be the one's buying the share price up now. Once it gets to their target price they can cover their short position and sell a bunch of stock for a nice gain. You just never know with them. In my opinion, when they give me a gift, like $7,$8, or $9 bucks for a great stock, you just got to buy it up and sit on it til the price is more reasonable. If it gets overpriced, take advantage and sell. IMHO there is no way TSLA gets to $100/share without games being played.
Their arrogance will burn them IMHO. They had a chance to cover in the $7's, $8's and $9's, but got greedy. I'm sure they think that they will get a better opportunity to cover. Meanwhile, the clock is ticking and we COULD be back in the $12's before they know if. For all I know this is chump change to them and they will wait until the $12-$15 range, when it starts to actually hurt them. Who knows with these guys. Seemed like a bad idea all along to me to short such a great company, that was already inexpensive.