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  • kmp98 kmp98 Apr 14, 1998 8:56 PM Flag

    This shorter will NEVER cover until AMZN

    Well I have to hand it to myself. I carefully waited to jump in and short this overpriced ponzi scheme called AMZN, and did
    so today for the first time. The reasoning is VERY simple. Today, 4/14/98, I sat down and set as a goal to make at least 70%
    from the share price movement of AMZN. I asked myself, "How can that best be achieved?"; which is more likely to happen: will
    AMZN fall back to at least the $30/share level, or will it go to $165/share. The answer to that is quite obvious to anyone who
    knows even a little about the stock market. AMZN WILL SEE $30/SHARE BEFORE IT SEES $165/SHARE.
    How can anyone in their right mind be long on this stock, come on, I mean out of the THOUSANDS of other stocks out there with far, far better fundamentals then AMZN; is this really the best place for your money? NOT A CHANCE

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    • Here's an idea that we can make at least 200%:

      Short AMZN with $50/share margin.
      When AMZN fell to $70, your $50 become $80.
      Double up your short position.
      Ride the short down to $35.
      Your original $50 will worth $150.

    • Glad you finally got the stock to sell short, BUT I seriously
      doubt you'll be able to ride it to $30. Remember you SOLD
      stock owned by someone else, and when they decide to
      sell, you buy. They may decide to sell when(and if) stock
      stock goes to $125 (unlikely but probable in this mania)
      SO don't smile too BIG just yet. When stock tanks (and
      it will someday), the owner of your shares will probably
      sell and that's the price you buy it back.

      Only true bearish position, with limited downside (the
      size of your position) is buy PUTS but the premiums
      are HUGE. Good Luck!

      • 1 Reply to davey_j_98
      • Premiums are large, but that's commonplace for stock of this volatility...and ISDEX volatility.

        I went for the puts hopefully far enough out (Oct 98) to make 3-4 times investment on market and ISDEX correction.

        No margin call worries, and minimal worry about premium paid, because as you stated, there are some $10-$15 daily drops on the horizon...

        Good luck!

818.99+8.67(+1.07%)Oct 21 4:00 PMEDT