Be careful on short selling. There is another game played out there. An investment pool will pick a stock that doesn’t have a lot of shares, say under 60 million, that is being shorted quite a bit. Then they start buying the stock, forcing the price up, the shorts have to meet their margin calls (daily). In fear, they buy the stock back to cancel their short position. That buy order makes the price of the stock climb even higher. This starts a vicious cycle upwards
The entity performing the short squeeze also has the advance knowledge to sell puts in the money and buy calls out of the money.
This is what can take common sense out of the market.
Another thing to bear in mind with options. They are thinly traded in some areas, just recommending them for others to buy, can triple the price you’re going to have to pay for them.
