I could understand shorting a BDC, but why pick PSEC in particular? There are others with lower yields paid quarterly, questionable management, or higher price to book ratios. What about PSEC makes you think the price will drop faster than other BDCs?
it is my opinion that this is not a stock one shorts or buys for large capital moves but one buys for income, to short this it has to move the 12% distribution and another 6% for the short costs of the brokerage not leaving you much money on a short move unless it is a day trade vs a long term short. There are many other stocks that give you better moves for day trading and shorting This is an annuity and I along with others own a lot of it and it will be hard to shake it from our hands unless there is a material change in dividend to the downside
I do not short,just take profits has work well for me.I just make more that you that way.Ialso catch most of the dividends.As I said it is about making money.You got to realize the more money the less cents it takes to make a profit with the commissions added.