[quote=gzz]Woohoo, my short position in Snap is finally in the black. Still above my initial short, but I shorted more 15-17 so in the black overall.
My UBER short has been profitable from the get go.
Also opened shorts in LYFT and PTON and MGI in the past week.
To offset these shorts, I purchased some Vanguard ETFs so I am protected if my shorts go up as part of a broad bull market.
For each company and read the annual report and analyst opinions, as well as most recent 10-Q. All are scary unprofitable.[/quote]
Shorting weak IPO stocks is popular way to make some profit even though I don’t do it. Wall street brokerage houses try to get as much they can from IPO price, so generally speaking IPO price most of time are over-valued. Even you made a mistake shorting strong companies, you can still get bailed out when the 6 month insider lockup period expires – Wall street doesn’t want corporate insiders to make big money when they are able to sell.
The popularity of shorting IPO by retail investors has made wall street mad as they want their client stocks to keep floating high the first several months. So they started a campaign against short sellers by buying most of the floating shares of Beyond Meat to cause major short squeeze and made share borrowing over 130% annual interest rate. Now time is so close to end of lockup period, BYND stock is coming down. Wall street is so crooked, but I believe price manipulation post IPO in 6 month lockup period is allowed by law for underwriters.
