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Posted: 1/16/2002 12:29:38 PM EDT
I just liquadated my short position on Kmart, having bought them short a year or so ago, After todays stock slide, I sold and am now over a 100k richer (don't tell any democrats). After they took their anti-gun stance, I knew that there bread and butter shopper would turn on them, and they did. Long term planning paid off . Thanks guys!
Link Posted: 1/16/2002 12:35:29 PM EDT
SO for helping you out you gonna buy us all a new rifle Right??[:o)]
Link Posted: 1/16/2002 12:37:50 PM EDT
Hah, talk to my wife, I will be lucky to smuggle a few K out for illicit gun show purchase cash.
Link Posted: 1/16/2002 12:47:41 PM EDT
Link Posted: 1/16/2002 12:51:18 PM EDT
Link Posted: 1/16/2002 12:59:12 PM EDT
Good job hielo. Glad we could help. Ive never had the nads to sell short, with my luck, the stock would soar to new highs. Dont forget the taxmans cut, damn taxman.....
Link Posted: 1/16/2002 1:01:41 PM EDT
Link Posted: 1/16/2002 1:09:20 PM EDT
Good for you! [<]:)]
Link Posted: 1/16/2002 1:23:02 PM EDT
Take that 100k and purchase Kmart calls for the dead cat bounce either tomorrow or soon. That's gotta be worth 100%+ profit.
Link Posted: 1/16/2002 2:37:39 PM EDT
You can adopt me now! Dad, can we go to SHOT show this year?
Link Posted: 1/16/2002 2:39:44 PM EDT
How did you make money on a stock that lost value?
Link Posted: 1/16/2002 2:54:38 PM EDT
Kmart is heading for the same trouble with PETA as Barnum& Bailey. Neither is taking care of their elephants properly. Poor Rosie gonna go hungry.
Link Posted: 1/16/2002 2:56:12 PM EDT
Link Posted: 1/16/2002 3:00:12 PM EDT
Link Posted: 1/16/2002 3:40:10 PM EDT
Originally Posted By AR15fan: How did you make money on a stock that lost value?
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It's called "Shorting" a stock. Do a google search for "Stock Shorting" and "Triple Witching" and you will get all the info you need. Also known as options trading..A great way to lose your ass big time. But as you can see, also a good way to make some cash with minimal investment.
Link Posted: 1/16/2002 6:59:04 PM EDT
Originally Posted By AR15fan: How did you make money on a stock that lost value?
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It's called selling "short" which you do by buying low and selling high-but in reverse order. Because you are selling high, you are in effect borrowing the stock and gambling that it will drop so you can buy it back low and "repay" the stock at a cheaper price, keeping the difference. The risk is that you gues wrong and and the price goes up. When you buy a stock worth $10, you can only lose it's total value, or ten dollars. If you sell a $10 stock short, it could go to $1,000,000 and you would have to buy it back at that price, losing the difference. In effect, there is no limit to the potential risk, so you'd better know what you are doing before you screw around with this type of investing.
Link Posted: 1/16/2002 7:12:07 PM EDT
Originally Posted By ar50troll:
Originally Posted By AR15fan: How did you make money on a stock that lost value?
View Quote
It's called "Shorting" a stock. Do a google search for "Stock Shorting" and "Triple Witching" and you will get all the info you need. Also known as options trading..A great way to lose your ass big time. But as you can see, also a good way to make some cash with minimal investment.
View Quote
"Shorting" is [red]NOT[/red] the same as "options trading". In shorting, you "borrow" stock from someone else, promising to "return" it later -- and then you "sell" it. You have a negative balance of, say, -100 shares of stock, and cash handed over to you for the sale of, say, $1500 ($15 per share). Next month, the stock has dropped to $2 per share, so you buy 100 shares to "return" to the guy you "borrowed" the original 100 from, paying out $200 to get them, and you have netted $1300. In options trading, you purchase the right to buy (or sell) shares at a fixed price for some defined period in the future. For example, you pay some guy $1.55 per share for the right to force him to sell you his 100 Microsoft shares at $75 per share, up through the third Friday in February 2002. (Options contracts expire on the third Friday of any given month, for some stupid reason.) If the stock stays around $67, you lose the $155. If the stock goes to $80, you just made out bigtime. For options traded on American stocks, these options can be exercised at any time during the period, or you can just buy or sell the options themselves to someone else. For European options, the exercise date is the one date that you specify, although you can sell the options to others during the intermediate period. In options trading, you have a limited risk -- at the very most, you can lose the $155 you put into the options. In shorting, you can go bankrupt if the stock takes off. KKD (Krispy Kreme Donuts) destroyed a lot of people who shorted it just after it IPO'ed; it became a bigger fad than these people expected, the stock went up, and they were bankrupted, which forced them to buy the stock to "cover" their short position, which caused the price to go up further, which bankrupted other people who had shorted, which forced them to buy to cover, which pushed the price up further, which. . . .
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