How to short a stock with zero risk.

Discussion in 'Options' started by wxytrader, Sep 13, 2024.

  1. Your capital stays the same. How is that risk? Plus you can always buy a call to protect from upside just as you would if you had a regular short position.

    Get D or P over here and run a synthetic comparison!
     
    #21     Sep 13, 2024
  2. Another benefit versus shorting. If you actually shorted the position it would be taxable...but if you phantom short it with your mind its un-taxable lol.


    Benefits of a phantom short compared to an actual short

    • No fees.
    • No commission.
    • No premium. (puts)
    • No margin requirement.
    • No theta decay. (puts)
    • No expiries. (puts)
    • No upside risk.
    • No tax on profits.
     
    Last edited: Sep 13, 2024
    #22     Sep 13, 2024
  3. schizo

    schizo

    When was the last time you checked your Net Liq?

    So suppose you buy them calls. But as soon as you do that, price moves against you yet again. What do you do then? Buy more puts? Dude, this is only possible in your Swiss Cheese head.

    Ever thought about just using stops to get out of your losses? It's a lot simpler than you think.
     
    #23     Sep 13, 2024
  4. taowave

    taowave

    I hope you realise this way of thinking will kill your chances of ever becoming a successful trader.

    I know alot of what you say is in jest, but being right and not making money is far worse than being wrong and losing..

    You appear to have some terrible habits/flaws....which I had as well

     
    Last edited: Sep 13, 2024
    #24     Sep 13, 2024
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  5. You are not understanding what a phantom short is. Phantom shorting is deciding you want to enter a long position, but not entering it because you expect more downside. You have just shorted the position with your mind...thus a phantom short. It will act exactly the same as a regular short, only without any of the drawbacks I have listed.

     
    #25     Sep 13, 2024
  6. schizo

    schizo

    So all this was in your head? Why didn't you say so from the beginning? I also love playing Monopoly. :D
     
    #26     Sep 13, 2024
    taowave likes this.
  7. tomkat22

    tomkat22

    Yeah that's called having a watchlist.
     
    #27     Sep 13, 2024
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  8. Not quite. You're more mentally committed to entering the position with a phantom short. Another part of the Phantom short is buying a call or a spread so you lock in the current price in case it rallies, but still have room to continue profiting to the downside like a short.

    So no upside risk or downside risk. I have accomplished what 50 years of mathematicians failed to do as seen in this video. :)

    Granted options pricing only exists because of the mathematicians...

     
    #28     Sep 13, 2024
  9. tomkat22

    tomkat22

    Well if you buy a call or spread it's not a phantom is it. It's called a trade.
     
    #29     Sep 13, 2024
    schizo and taowave like this.
  10. Darc

    Darc

    How?
     
    #30     Sep 13, 2024