LYC 0.16% $6.29 lynas rare earths limited

Isn't this strange, page-49

  1. 7,458 Posts.
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    First let me be clear i do not do any shorting. In US it is expensive and the person leading shares can recall them when they need them. Since retail shorted shares have to come from margin accounts than usually means as stock drops the person gets a margin call and has to recall them just as you start to make money..

    I buy Puts to cover the down side. . I am currently trading puts in three companies Tesla being the biggest. About 4 x the other two combined. With the market going to new highs not only of SP but other measures Like PEs and new lows for things Like EPS ROI,AND ROE. The US and other Feds are still pumping in money but soon they may slow or even reverse that. What i am seeing is across the board an increase in PUT and Short activity. Lynas with less than 2% shorted long term has a very low short level. Some of this is related to its price which is low. A low price puts a very real limit on gains, Stock can only go down so much. There is no limit on loses if stock goes up. I was always amazed when stock was below AUD 3.00 how high shorting was.

    Rember shorters regardless if they use shorts puts or selling uncovered Calls. Just think the stock will go down. This is exactly the same as holders thinking the stock will go up. Both just want to make money. Shorters have no more ability to make the Stock go Down than holders have to make it go up. Both groups if they have enough can influence price but there is no advantage to ether side. IF good news comes out shorters can get caught in a short squez. forcing the stock higher. If bad news comes out holders can get caught in panic selling forcing the stock lower.
    Last edited by ContraryJ: 02/09/21
 
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$6.29
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1 1079 $6.29
 

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