Very little shorting of any stock below $5. The bo
Post# of 72440
Very little shorting of any stock below $5. The borrowing costs are too high. Those couple who are bashing are just hoping for a cheaper entry. While the MMs and bigger player are just looking to exaggerate the share price to make a bit extra.
If you had money, you could put in a series of sells, the MMs would keep dropping the bid/ask in reaction, then at a certain level you hit stops and get filled for the larger amount. As the price goes back up, you're net position is much better. The same works on the upside.
MMs do the same thing to cover their book when they find themselves net short or net long. They expect mean reversion, so they will go net short into a parabolic rally expecting to be able to cover lower, as one example. They also see the orders stacking up, so they raise or lower the price to get extra pennies out of us. The swine.