How to short a stock with zero risk.

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

  1. taowave

    taowave

    Phantom short my ass..
    No such thing..

    Slap on a risk reversal

    Learn how to trade


     
    #31     Sep 13, 2024
    ESmemberRates likes this.
  2. It's still a phantom short. I mean with a regular short you usually buy call protection anyway. :)
     
    #32     Sep 13, 2024
  3. schizo

    schizo

    More precisely, it's called paper trading (only in your head).
     
    #33     Sep 13, 2024
  4. It's not though because with a phantom short, an actual trade is imminent.
     
    #34     Sep 13, 2024
  5. poopy

    poopy

    Opportunity is not a short. A short put is always long delta. You are going to blow out accounts until you stop reloading.
     
    #35     Sep 15, 2024
  6. I don't think you understand what I'm saying. I have mentally decided that I'm buying a certain stock. However, I don't actually pull the trigger. Instead I stay on the sidelines. This will have the exact same effect as if I actually shorted the underlying but without the upside risk., or margin requirements. That's why I call it the Phantom short. :)

    The only difference is when I buy I will actually be holding the underlying versus closing the position, but I will also be collecting a dividend versus paying it out.
     
    Last edited: Sep 15, 2024
    #36     Sep 15, 2024
  7. poopy

    poopy


    I get that you're suboptimal/borderline functional.

    And what if it rallies... the stock that you were planning on buying. You were right to get long but missed the entry. What's the rationale for shorting a stock you want to acquire? This sht reminds me of Taleb's love of "cheap" KO-puts when he was Paloma... he was right but lost the premo when the put struck the barrier. The difference is that he was actually in the mkt not playing SPED-games.

    I run a model for D1 that covers a long when the gains over the projected holding period results in a "free call" that was ATM at inception (OTC convention/50D).

    Your absurd phantom short is symptomatic of something like early-onset frontotemporal dementia.

    Short a put strike under your short target. At least there is actual PNL involved in your wheel absurdity.
     
    #37     Sep 15, 2024
    Sprout likes this.
  8. taowave

    taowave

    No doubt he has some cognitive disabilities ..

    Simple Math is always off,and his reasoning is challenged..

     
    #38     Sep 16, 2024
  9. I looked into selling puts but the premiums are cheap af. If it rallies you have a long vertical call spread to cover the amount of shares you are planning on buying.

    LOL btw. :)
     
    #39     Sep 16, 2024
  10. taowave

    taowave

    Long Verticals??

    I thought you were 100% in cash raking it in on the phantom short..which is now delta long via Verts??

    A mind is a terrible thing to waste
     
    #40     Sep 16, 2024