Oct. 3 at 5:22 PM
$HOOD Sorry to rain on the parade (just amusing myself) - but here is why I'm shorting HOOD recently. Main reason is I need shorts as a risk management tool and HOOD being so sensitive to risk on / risk off is a good stock to be short should things go south, which they will do on occasion. And it is so extended here that I kinda 'know' in so far as that's possible, that it is only a matter of when and not if, I will be able to cover for a decent profit. But why short in the face of such obvious optimism - well aside from the silly valuation, it reminds me of another short I had for a period and the sentiment was the same - Square as it was known then (now BLOCK ticker
$XYZ) was going to be the killer app and it would put banks and others out of business, hence the price to sales of 20x on the next post here. This headline is from 2020. And as we know the stock went from 20x to sub 2x. Valuations peak at peak optimism, Hood won't be as bad but could get cut in half easily.
