MSB Trading - 2020, page-20290

In response to people who talk about shorts selling out for the weekend, no way they will hold overnight, short squeeze etc etc

What exactly do people think the shorts are doing?

Option A - shorting the stock price based on volatility, but keen to "get out for the weekend" based on what? News likely being positive? The only risk to shorters holding over the weekend is if news is positive and TH occurs before Monday open. Seems risky to short if you think news is going to be positive; then sure, never hold a short position overnight or over the weekend. Just short the volatility daily, right? And pray that there is no intra-day TH. Risky.

Option B - shorting the stock price based on news likely being negative. As Cato said, they will scrutinise all the data they can in order to make this determination (the same way we have when we hope for news to be positive). In this case, if they expect news to be negative, wouldn't it then be prudent for shorters to HOLD over the weekend, so as not to miss that elusive pre-open TH?

If it's option B, why would shorters sell?
And if it's option A, wouldn't shorters selling be GOOD news for us? It means that impending news is a 'threat' to them and they want out because they think the news will send the SP north.

So are the number of shorters increasing or decreasing? That information is very telling about the analysis the shorters have undertaken. Remember, we as investors, cannot lose more than our initial capital investment. The shorters can lose much more than their initial investment, especially if MSB goes to $10+ overnight on good news. Would you take that risk without thoroughly researching every nook and cranny of a stock? Imagine losing an UNLIMITED amount of money having to buy back shares at three bags (or more) per share! At least for us, if news is negative, there is a finite amount of money we can lose, and we know how much money that is before any kind of TH or announcement. If news is positive, then we have an infinite amount of money to gain, just as shorters who didn't get out have an infinite amount to lose.

Regardless, both investors and shorters can be winners here. Shorters selling out is great news for us as it shows they are scared of news, and all power to them if they can make some money in the meantime and get out before a TH, which would then give us a turn to make some money too off the back of good news.

Shorting and investing are not mutually exclusive and it wouldn't surprise me if some people here are 'hedging' their investment by also shorting, especially those with significant holdings.