Jun. 4 at 4:13 PM
Tradingistheway's pointing out of
$STI, along with
$FISV is sobering. Theoretically, when shorting stocks your risk is unlimited. In STI's case, if long, your downside is 5. The STI shorts, if they had an outsized position, woke up today with their accounts, quite possibly at zero, maybe owing their broker money.
Given that FISV is so low, any catalyst: merger, management change, some positive announcement, hot money fleeing from semis, anything, you run the REAL risk of waking up one day, facing a 20 point gap up, a margin call, an account with negative equity, and game fucking over.
Risk to reward shorting down here sucks, even if you ultimately make a few bucks.
