Someone for sure is wrecked here, no doubt about it, the play went wrong and wrong fast, the spike up across the uranium sector happened quite fast actually. From the sell off panic monday the shorts looked still reasonable... then all of a sudden a creep up in the spot price, some normality back to the world, then PLD rocketed, then Boss Q3 was great and that was it, matter of weeks the short thesis was done.
IF and that is a big IF they are a sophisticated trader they might hedge a short with options (e.g., buying a call option to cap losses). This has worked very well in the past. I dare say to minimise the massive positions they would have opened a call option and quite possible large margin to cover short losses.
I know one trader personally who has done this, big short position they had reversed hard and they were in losses, the short position was only on x2 leverage/margin, which was substantial losses. To counter this they opened call options with very very large margin to counter the loss and also profit.
So there are some ways to stop the leaking ship, but I highly doubt they are running strategies like this as the risk would be massive to them and bankrupt the whole firm.
BOE Price at posting:
$3.66 Sentiment: Buy Disclosure: Held
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