Selling Short

Discussion in 'Trading' started by BMK, Mar 3, 2023.

  1. BMK

    BMK

    Would love to hear from others who sell stock short, or take short positions using option spreads.

    If you sell stock short, do you hedge with a long call? If so, how do you choose the month and the strike?

    If the stock goes sideways for a while, with no significant gain or loss, how do you decide when to give up and liquidate the position?

    How do you decide what size position to take?

    Do you sell vertical option spreads, without actually selling the stock? How do you pick your strike prices and expiration months?

    How do manage risk? If the stock starts going UP, how do you decide when to take the loss and get out?

    If the stock goes down, same question: How do you decide when to take your profit and get out?
     
  2. qlai

    qlai

    All good questions
     
  3. tomkat22

    tomkat22

    LOL nobody wants to break radio silence and talk strategy. I'll occasionally do a fade trade if IB has the shares to borrow, which they frequently do not.
     
  4. Mo06

    Mo06

    Easiest way is to sell CFDs.
     
  5. tomkat22

    tomkat22

    I think only the limeys are allowed to trade those.
     
    JonLivingston likes this.
  6. LoL - TIL limeys. And yes that's right, only we can. Suckers :p
     
  7. tomkat22

    tomkat22

    You're alright Jon Livingston...for a John Bull. LOL
     
    JonLivingston likes this.
  8. BMK

    BMK

    Yes, but functionally, CFDs are almost identical to US index options or index futures. And even equity options are very similar. With options and futures, you can get almost the same exposure as you would with a CFD.
     
  9. Overnight

    Overnight

    If that were true, CFDs would not be banned for US traders. Why does the USA ban them?
     
  10. tomkat22

    tomkat22

    From what little I know about CFD's I thought they were more akin to playing the lottery,scratch off,etc. Dont you just buy them from the local 7-11,convenience store,bodega? No broker needed?
     
    Last edited: Mar 6, 2023
    #10     Mar 6, 2023