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Only a very small segment of the market use options to speculate. The vast majority of options (and other derivative instruments) are essential in the transfer of risk. Some derivative instruments are much older than any stock market. Hedging using options, swaps, futures etc. is essential to the stability of the market.
A hammer can be used to build or repair things. It can also be used in a violent way. As with any tool, it can be misused and abused in an unproductive way. Derivatives are much the same. You demonstrate ignorance by condemning an entire concept by focusing purely on a tiny proportion of the market that abuses it. It would be like me saying all football fans are hooligans.
Even cycling , cheats in that game too.
But say what you want about Lance Armstrong, to be the 1st man on the moon, you can't take that away from him..
Not really big trader. Investing in companies you believe in is the original name of the game.
It's been twisted inside out with all kinds of crap since inception, shorting, options etc etc.
Everything in life starts out simple then gets f*cked by people trying to make a quick buck.
Bit like football or boxing!
Each to their own I suppose.
Sod everyone else, wheres my £1.83 sp...
:-)..
Good form Sammy. Like the good ole days when lady posters would come flocking to your sweet words.
Intresting quote Sammy/Steve.
Hard to argue with too
Spot on antmoss
I guess were all here to make money , but at what price ?
Some love people and use money , others love money and use people ..
Ain't life a daisy :-)
Lth's, traders or shorters everybody to whatever suits Imo
Now what does rile me is when idiots come on here with the sole intention of getting people to sell even at a loss. On and on with numerous posts a day drudging up old news etc.
Yes before anyone says it can also work the other way too which can be just as bad.
Some do sell on this info at a loss.
Another one soon out...
https://blazingminds.co.uk/operation-mincemeat-uk-cinema-release-date/
@MikeBarso - that is like saying buying shares (longing) lends value to underserving companies. Should we condemn that too?
Informative and balanced ....unusual on many boards.
Learnt some stuff today, thanks.
Everyone can learn something however long you’ve been involved in this game.
Cheers guys
Short sellers do not destroy value any more than stock buyers create it. Other than IPOs, buying and selling stocks is all done on the secondary market, so selling stock does not hurt a company any more than buying stock helps it.
"I've always thought, that short-sellers buying shares on days when stock is plummeting would actually slow the price fall."
Except that short sellers don't buy shares, they borrow them to sell. How short selling works is you borrow shares from someone who already owns them, and sell them. You pay interest on the borrowed shares, and at some point you buy the shares back (hopefully at a lower price) and give them back to the person you borrowed from.
So there's no more price impact than normal buy and sell transactions.
The stigma with short sellers is that they are contrarian to the majority of investors who are "long" the market overall, so they are seen as friction. Also, in addition to their short selling they spread rumors to drive down the stock price, but this is also done on the buy side with "pump and dump" schemes, so again there's no more impact than what is done on the buy side.
Disagree. They stunt the genuine growth of great stocks.
This is not what the stock market was originally intended for.
A ridiculous comment. Lending stock is an important contributor to well-functioning, liquid markets. And an important part of price discovery.
Shorters are****** that f*ck the stock market up. Simple.
I have never shorted anything. I only invest in companies/funds I like. Keep it simple!
Bigtrader, have you got both long and short positions in CINE? Might be a good strategy but I think there will be more winnings with long position than short position. We have seen how quickly this moved now from 30s to 40s. This is clearly heading to 50s.
Agree that some hold short positions due to uncertainty but I think there are no headwinds rather tailwinds now as the appeal is going to take very long time so the only news coming out now for next few months is all about Big movies and US listing, which will help CINE share price to go up so am long on this one. GLA
Capehake - a very narrow-minded view.
Lending stock is often carried out by banks in order to offset exposure taken on by arranging a position for a client. An intermediary may hedge an equity swap in such a way. It's not because the intermediary has a poor outlook on the subject equity, just a mechanism to offset risk. Not shorting, in this example, would be foolish.
Most of the traders that have borrowed Cineworld shares in order to profit from downside share price movement will do it as part of a broad strategy that fits the objectives of their portfolio. Therefore, they won't be chopping and changing their positions as frequently as retail traders do (largely driven by behavioural investing tendencies).
Thecouchman and Bonkers are right - good to be encouraged by the recent rally, and although there is a lot to be positive about (good film slate, restrictions easing etc.) there are still a number of headwinds. You are painfully limited if all you can see on the horizon is good news. Provided Covid keeps mutating into a weaker form, the film slate is delivered as planned and some progress is made on the appeal, there could be significant gains ahead. There are a number of 'ifs' though. The problem here is retail traders often think in absolutes.
I remember after financials last year we dropped to 90 odd pence a share , it had dropped from 1.24 ish quite quickly , I remember topping up as I didn't think we would see under 90p again.
Back then I too believed shorters would be crazy to bet on a stock which seemed to only have good news ahead.
My last top up was around the 30p mark so how wrong was I lol.
As lth we always feel the stock is under valued hence why we invested , others may see other things that we refuse to believe , hence the shares game lol
With luck we will see further gains today
We are far from out of the woods yet. We still have a court judgment against us... and no one really knows where that's going to go.
Yes, the fine may get reduced, but no one really knows to what figure it will cost us.
Some shoeters may hold out for a while yet.
have either a very low IQ and they are just plain dumb. Imagine having a short position when there is ONLY good news coming. This is basically undervalued by 100p right now.