And you know what? None of this matters. Beyond the childish taunting of the few trapped retail short short idiots, a short is a short, and it needs to be covered at some point. The dynamics are the same whether the short position is under water or in profit. Indeed, one could argue that, for longs, it can be better for the large short positions to be in profit at the moment, because there is a strong incentive for the pros to cover their shorts and book their profits if there is a decent price move upward in the near future. If you took out a short at, say, 10 in Jan, and are happily in the money now at 8.3, you would want to take your profits if the PPS started approaching 9, triggering more buying via momentum.
The shorts will cover at some point. They will cover if the PPS rises so as to book their profits. Or, if the launch fails, they will wait until the longs capitulate and then book their profits. They only way the shorts will truly be squeezed is if there is an unanticipated event they cannot plan for. That could happen, but planning for the unexpected is a risk for all sides in the short-long fight.
I agree. I also short stocks but this is not one of them as I am long + like the long term story. I never short stocks that are low in PPS. The money you can lose is infinite + the reward is small. Even short at 8 means the most you can make is 8/share assuming the stock goes BK. The most you can lose is enormous. I never understood shorting at 3 or lower. My initial shares are at 1.55 + I have added on the way up. I did just short 2 refiners on their big run up on Fri.
Tod says he's not short but thinks its going to tank, why even post or follow the stock. If you're sure + don't want a large risk, buy puts, but he just posts to irritate. Needs a life.
And the reason you are an idiot is that you missed the point. The shorts DID cover in Jan, tens of millions of them... They also reshorted at the peaks, tens of millions of them. I know personally someone who took out a large short position at 10.90 in Jan. And covered it last week at just above 8, to make a decent profit. It's what they do...