02-04-2013, 12:49 AM
How the shorts are positioned would determine the hurt degree.
-The shorts pay to borrow shares. Borrow price is 5% annually last time I checked. Not such a big price.
-If the shorts are Long out of the money calls on IOC those erode in value and they could be losing money.
-If the shorts are Short out of the money and IOC stays flat those calls erode in valus and they make money. Think Eric thats his bet. He brags he is short March $80 and March $100 calls at this time.
-If the shorts are long puts and IOC rises they lose money.
-If the shorts are short puts ans IOC stays flat they can make money.
Way to many posibilites for generalizations.
-The shorts pay to borrow shares. Borrow price is 5% annually last time I checked. Not such a big price.
-If the shorts are Long out of the money calls on IOC those erode in value and they could be losing money.
-If the shorts are Short out of the money and IOC stays flat those calls erode in valus and they make money. Think Eric thats his bet. He brags he is short March $80 and March $100 calls at this time.
-If the shorts are long puts and IOC rises they lose money.
-If the shorts are short puts ans IOC stays flat they can make money.
Way to many posibilites for generalizations.