Do institutions short stock to be able to hold them up later???

Discussion in 'Trading' started by bungrider, Dec 17, 2002.

  1. Just curious...

    Say I am some big shot at goldman, and we have this stock that we really love. The stock is way overbought, and we have been shorting it anyway to supply our customers (because we love them so much and we want them to make money).

    Would we ever want to put on a huge short position in this stock anyway, just to be able to hold it at some important support level later on when the market breaks sharply lower??