Where to go to short stock? (user search)
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  Where to go to short stock? (search mode)
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Author Topic: Where to go to short stock?  (Read 565 times)
I spent the winter writing songs about getting better
BRTD
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Posts: 113,458
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E: -6.50, S: -6.67

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« on: April 02, 2024, 03:22:59 PM »

I want to short Trump's Truth Social stock, but the only app I've used is Stash that doesn't allow shorting. Anywhere I can do this?
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I spent the winter writing songs about getting better
BRTD
Atlas Prophet
*****
Posts: 113,458
Ukraine


Political Matrix
E: -6.50, S: -6.67

P P
« Reply #1 on: April 02, 2024, 10:37:58 PM »

Any online brokerage would allow you to do it, allow they may have rules on how much value is in your account before you can.  Also, please note that SEC rules prohibit shorting a newly traded stock for 30 days after its IPO.
So I can't until next month?
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I spent the winter writing songs about getting better
BRTD
Atlas Prophet
*****
Posts: 113,458
Ukraine


Political Matrix
E: -6.50, S: -6.67

P P
« Reply #2 on: April 09, 2024, 07:12:46 PM »

Shorting is a bad f**king idea unless you're a professional stock trader and doing your full due diligence and have a lot of money to burn away if things go south. It might be a fun meme until it really, really isn't. I'd try to find a less risky way to own the cons if I were you.
It's not like I'd be putting in loads of money. Definitely wouldn't do anything higher than $100.
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I spent the winter writing songs about getting better
BRTD
Atlas Prophet
*****
Posts: 113,458
Ukraine


Political Matrix
E: -6.50, S: -6.67

P P
« Reply #3 on: April 09, 2024, 07:41:00 PM »

Online brokerage. IBKR from what I see allows it. Its UI confuses me but you could probably do it. However fair warning. The short interest fee is insane on this stock at 500% which means
https://www.msn.com/en-us/money/topstocks/why-shorting-trump-s-djt-stock-could-cost-you-a-500-fee/ar-BB1l1vlp
Pretty sure you can short it now as it isn't an IPO and the stock did exist before as DWAC
Quote
Based on that data, to short 100 shares of Trump Media & Technology Group at the current price, it would cost between $24,895 and $29,874 a year. That means the stock would have to fall about 1.4% a day just to cover the cost of shorting it. And if the short were held for a year, the bet would still lose about $20,000 to $25,000, even if the stock price fell to $1.

Even if the stock falls to 0 over a year you would lose $20k. You only would profit a touch if it goes to 0 within say around 10 weeks. Don't touch this. Another potential risk is the possibility of a short squeeze if it gets over shorted and if it for some reason goes up it could trigger a cascade of short sellers trying to rebuy the stock further pushing the price up.

If you want to have fun with some light gambling $2.5 dollar puts expiring either January 2025 or January 2026.  This would cost you roughly 40 dollars or 80 dollars for the latter one and give you either 210 for the former or 170 profit for the latter if the stock hits 0 dollars.(excluding the losses on the risk free interest rate). Note that any losses you incur on this put strategy is not my fault as it is not financial advice, just a possible play with less risk than your suggested play.

Also for anyone dumb enough to want to buy the stock for some reason, you can actually buy the stock with a weekly discount by just going synthetic longs by buying a call and selling a put. Normally a synthetic long should cost 0 dollars or even cost you money due to bid-ask spreads but in this case a synthetic long is cheaper than the stock itself. To be specific this discount exists due to short selling and you would forgoe the short selling fee but brokerages rarely give you the full fee when you lend a stock.
I definitely wouldn't be putting down $20k lol.

No more than I'd bring to a Blackjack table, which I've never done more than $100.
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