I just shorted some UAL

[satpak77]

Just shorted some UAL stock, at 19.52. Oil prices, etc causing majors to tank (stock prices).

Lets see what happens.

Comments wanted

 

[sstearns2]

I wouldn't assume the stock market is logical or rational. It's just a casino unless you're a huge player and can manipluate the market.

Good luck...

Scott

 

[tomgoodman]

I wouldn't assume the stock market is logical or rational. It's just a casino unless you're a huge player and can manipluate the market.

Good luck...

Scott

Yes, short-selling can be very dangerous, even when you have "fixed" the game. Some crooked speculators once bribed New York legislators to deny Cornelius Vanderbilt a crucial route authority, and simultaneously shorted stock in his railroad. Sure enough, the stock price fell like a rock, but the Commodore had his agents quickly buy up all the shares. When the conspirators tried to cover their positions, there was no stock to be had, except from Vanderbilt. He had them in a classic "short squeeze", and ran the price through the roof.

 

[FlyinGuy]

Did you mean to say Sharted?

 

[airgator]

"Just shorted some UAL stock, at 19.52. Oil prices, etc causing majors to tank (stock prices)."

Good luck with that, the time to short a stock is before its down 7% in a day, not after. Me thinks it's looking like a nice time to get in.
Oh, and don't take financial advice from pilots.

 

[Mike man]

Just shorted some UAL stock, at 19.52

Ooops...maybe it will drop when it opens on monday

 

[Traderd]

Yes, short-selling can be very dangerous, even when you have "fixed" the game. Some crooked speculators once bribed New York legislators to deny Cornelius Vanderbilt a crucial route authority, and simultaneously shorted stock in his railroad. Sure enough, the stock price fell like a rock, but the Commodore had his agents quickly buy up all the shares. When the conspirators tried to cover their positions, there was no stock to be had, except from Vanderbilt. He had them in a classic "short squeeze", and ran the price through the roof.

Great story! The Vanderbilts - back when a billion dollars was a billion dollars!

Of course the manipulation of the squeeze is handled quite differently in today's electronic environment but it can still be manipulated. I see the primary dealers and their prop desks as the modern day Robber Barons and if one thinks that one can take a 7 or 8 figure trading account and joust with these guys; well, one might just be dellusional.

Shorting is only as dangerous as your stop and the spread's volalility allow it to be. One caveat is that if you hold a position after hours, all bets are off. I will trade the pre-market but try hard to be in all cash at the close.

My best to Satpak77. I have a lot of respect for those who short on more than a 3 minute time frame; got some brass ones I guess. Right now the trading floor is littered with the losses of those who have been shorting NFLX. The recent house action may vindicate their thesis in the near future (if there is no veto) but the money will still be just as gone.

 

[tomgoodman]

Great story! The Vanderbilts - back when a billion dollars was a billion dollars!

Postscript to the story: The bribed legislators had shorted the stock too, hoping to profit twice. Facing a huge loss, they "reconsidered" the route authority decision, and Vanderbilt let them off the hook. After all, he might need favors from them in the future.

 

[satpak77]

yes lets see what shakes out. I don't claim to be "right" or "wrong" just trying to be on the same side as the winds of the market. The winds of the airline stocks appear to be shifting them down.

If I am wrong, ok. Some people have $20,000 bass boats and fishing tackle as a hobby, I have Ameritrade !

have good weekend everybody

 

[satpak77]

Shorting is only as dangerous as your stop and the spread's volalility allow it to be. One caveat is that if you hold a position after hours, all bets are off. I will trade the pre-market but try hard to be in all cash at the close.

buy stop is at 7% loss point

328M shares outstanding, I don't see a "gap up" next morning in this sector unless huge overnight drop in oil.

 

[Traderd]

buy stop is at 7% loss point

328M shares outstanding, I don't see a "gap up" next morning in this sector unless huge overnight drop in oil.

With a 7% risk on this stock, I agree the chances of a gap that will exceed the stop is pretty much in Black Swan territory.

Just curious if you've borrowed the shares to short or if you're using options as the tool.

Another double edged sword (aren't they all?) using options but it does give one a lot of leverage with a pre-defined risk total.

 

[satpak77]

With a 7% risk on this stock, I agree the chances of a gap that will exceed the stop is pretty much in Black Swan territory.

Just curious if you've borrowed the shares to short or if you're using options as the tool.

Another double edged sword (aren't they all?) using options but it does give one a lot of leverage with a pre-defined risk total.

no options just shares

 

[Jetjockey]

Never take flying advice from a doctor, or investment advice from a pilot. Enough said.

 

[pilotgolfer]

Well you are down a buck now.

 

[satpak77]

yes indeed. gonna monitor things