Short squeeze: Plan of action needed

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jwblue
Posts: 281
Joined: Mon Nov 05, 2012 10:24 am
Location: Irvine, CA

Short squeeze: Plan of action needed

Post by jwblue »

I am investing in a stock overseas. There is talk of a short squeeze in the near future.

I want to be prepared.

When do I sell?

Does the share price always come back a certain percentage from the high?
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Ranger
Posts: 446
Joined: Tue Feb 20, 2007 9:27 pm
Location: Wolverine Nation

Re: Short squeeze: Plan of action needed

Post by Ranger »

If they have options on that stock buy slightly out of the money calls
Alistair
Posts: 209
Joined: Fri Oct 17, 2008 9:01 am

Re: Short squeeze: Plan of action needed

Post by Alistair »

Don't buy anything with a 7 in it.
gvsucavie03
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Joined: Sat Feb 16, 2013 7:30 am

Re: Short squeeze: Plan of action needed

Post by gvsucavie03 »

jwblue wrote:I am investing in a stock overseas. There is talk of a short squeeze in the near future.

I want to be prepared.

When do I sell?

Does the share price always come back a certain percentage from the high?
Buy, hold, ignore noise, only sell for TLH if you are diversified enough.
less
Posts: 158
Joined: Mon Sep 16, 2013 12:38 pm

Re: Short squeeze: Plan of action needed

Post by less »

Some brokerages have a page where they list the number of shares they have available for short-sellers to borrow. Keep tabs on this number and close out when the #shares shrinks.
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