HSX Forum

Playing & Trading Strategy

You know what's fun? Shorting the same stock several times.

Posted by: JohnTEQP on Nov 16, 21:58 in response to 121Jigowatts' post Thanks. Since this is the case....

I've discovered an interesting strategy for making money on penny stocks as manager of the Original Idea Fund. Say I short a stock at H$0.05, because it looks like it is going to delist at zero or maybe 1 cent. Almost guaranteed free money. So then it falls to H$0.01. I cover my entire short, except for 1 share, because it's going to delist at that price anyways. This frees up some cash. As a fund manager, I want to keep the stock in my portfolio, to show that I hold it.

Now suppose the stock somehow gets back up to H$0.04, because someone or other is very optimistic (or clueless) about its prospects. But it still has minimal or no reported box office. It's possible, but highly unlikely, that it will actual delist at H$0.04. But I'll short it again, and once again wait for it to either drop to H$0.01, or delist. More free money!





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