If the bashers are short 10,000 shares, the bashers musk keep enough assets or cash in their account to equal 150% of the value of that stock.
This is how the bashers get burned.
If the basher has 10,000 shares short and the share price goes up, he must add cash or assets to that account.
Example 10,000 AMD shares go up 10 cents. The basher must have either add cash or assets in that account to maintain the 150% value of AMD. In this case, it is $1,500. For a 50 cent increase, that would be $7,500.
If the basher does not have the assets or the cash in the account to maintain the 150% required balance, the broker will force him to buy back the AMD shares at this higher price.
The losses the bashers could have is unlimited while for those longs you do not have a loss until you sell and nobody can force you to sell UNLIKE the bashers who are short.
If the stock price was to shoot up even $1, the bashers would have to add $15,000 to his account.
The share price will not remain this low for much longer when AMD will be going from a $300 million loss to a profit in Q 3 and we can laugh at the bashers as they go up in flames
Sentiment: Strong Buy
1. You don't know how shorting and margin work.
2. My basis is higher than this stock could go if it suddenly got back the 70% of the PC market it lost last December, and the PC market returned to industry prominence. Those things won't happen, ever, and the businesses AMD is chasing have nothing like the profitability or unit sales of PC chips.
3. Unless you're long on margin, you won't be forced to sell. You will simply lose all your money. Which, since it's in my pocket, you've lost already.
4. I will never have to cover.