So are we talking about a 20k hit in the face? With more prospects to go down and create a greater hole, since you bought more. I hope you are doing well with your shit coins, because you are going to need something to cover it up.
In contrast to equities, options are zero sum. Yes, there was somebody on the other side of that trade. He's smiling, not wimpering for sympathy in public.
Won't go to zero as long as the ax can milk it. Could churn sideways for years though. Occasional sucker rallies. The surface mathematics of a short is poor. $100 to $50 is 50% but $50 to $100 is a double. Same dollar move. The beauty of a short is the speed of the move. Typically 3x.
You misunderstood @wxytrader, he is saying this trade could get him another Lambo if he waits for the next dead cat bounce.
The former phama CEO Martin Shkreli /@realmartinshkreli/ have made several yotube videos about the stock analasis of the stock and the phase 3 etc. He recomende to sell the stock 2 months ago, and he shorted the stock. I once read about a guy that had brought a shipping stock that was cheap on PE, it then drop another 80%. He then brought some more and made loan/ aginst his house. Because the shipping stock was trading below bookvalue. The value of the rusty old ships and the cash. It went on for some years. Then the forum closed. So. I do not know, if he ever got his money back But good luck, we are all making mistake sometimes
You are generally correct but in the biotech business, they could change direction and claim the drug has efficacy against some other incurable brain disease, like Parkinson's or ALS... Wall Street usually will bite and push the stock back up again, gives him a chance to get his Lambo.
Think you misunderstood me. An unsustainable dead cat bounce would be either the ax dispensing with excess inventory OR capitalizing on an alibi to gap it (up or down).. Likely require some news fluff. FDA trial results as an example. It's not reliable "notion" Mr. THREE THOUSAND post wxytrader in no longer in the CBOE arena. He's a proud shareholder. At the mercy of the ax. Playing for squiggles. Oh, that volume spike was capitulation. The ax' final accumulation of inventory. Coffers full. Then time for him to "work it". The merchandising of paper.
Never say never, who says there won't be a next spike after the squiggles since there is one after the first squiggles?